Yesterday, Governor Christie signed into law A-2911, which requires the transfer of municipal free public library surplus amounts above 20% of its operating expenditures to the municipality for its general purposes. The 20% threshold excludes funds restricted for capital projects and grants.
The Library Board of Trustees must adopt a resolution of its intent to transfer excess funds to the municipality. The resolution is forwarded to the State Librarian for approval. The State Librarian must approve any resolution as long as the following provisions are met:
1. The library will retain a sum equal to the amount of the audited operating expenditures of the library for the most recent available year plus an additional 20%.
2. The library and municipality are in compliance with the per capita library aid to public libraries pursuant to the “State Library Aid Law”.
3. There are sufficient funds remaining in the library’s operating budget for the maintenance of the library for the balance of the fiscal year.
4. The Board of Trustees has an approved written plan of at least three years that reflects the long-term funding needs of the library will be met, and that any capital expenses will contribute to the provisions of efficient and effective library services.