Libraries fire back on Indiana bill to remove taxing authority

Hoosiers visit their local libraries millions of times each year, one of the public services funded by tax dollars. But boards overseeing the entities have a unique position in Indiana because the appointed members can impose a tax levy for certain needs—a funding option not available to other public services.

A proposal from Republican Sen. Gary Byrne, of Byrnesville, would remove that authority from the public board and give it to the county—a process he said “works very well” with other services, like public parks.

“The primary goal is to have the elected fiscal body have a … review of the unelected or appointed boards,” Byrne said Tuesday, adding that he believed it would have a “neutral” revenue impact.

“I actually had a constituent come up to me and ask about the library tax when I was on the (county) council and said, ‘Well, that board is appointed. We really have no binding review over what would happen,’” he continued. “(This) just would allow the elected bodies to have a little more say or control and be able to answer to the constituents in their district.”

But librarians, five of whom appeared to testify in opposition, believe it creates “an additional layer of bureaucracy” and said that counties, schools and cities work together to appoint board members.

“Library boards operate openly and transparently so the public can be as engaged as it wants,” said Vanessa Martin, the co-chair of the advocacy committee for the Indiana Library Federation. “Public libraries are also regularly audited to make sure that funds appropriated are being spent as they are meant (to be).”

The bill comes as libraries continue to be under fire for their catalogs, including efforts to ban books with LGBTQ or anti-racist themes. Notably, Lt. Gov. Micah Beckwith was part of the Hamilton East Public Library Board of Trustees and spearheaded a book review policy that included prominent local author John Green.

Senate Bill 283

No one testified explicitly in support of Senate Bill 283.

David Bottorff, executive director of the Association of Indiana Counties, said it is his group’s policy that taxation should be approved by an elected body. But he added that he is glad the bill is being held as there are concerns about which fiscal body would be in charge—counties or cities—and what would happen to existing debt.

“That’s our involvement,” he said.

According to the Indiana State Library, roughly 237 libraries throughout the state have the power to introduce a levy on property taxes, an authority overseen by the Department of Local Government Finance. Then the board justifies the levy in a public hearing before the state can certify.

But Byrne seemed to find support among his Republican colleagues. During his time in local government, he said finding people to serve on the board could be a challenge—something Sen. Mike Gaskill said he’d also seen.

“Both as a school board member and as a county councilman, my experience was that there wasn’t a lot of thought and competition,” said the Pendleton Republican. “… those people end up basically having taxing authority over residents.”

Pushback from libraries

But not all of Byrne’s colleagues agreed.

Sen. Fady Qaddoura, D-Indianapolis, wondered what problem this bill was trying to solve and questioned whether there were other ways to meet that goal.

“I think it might be helpful to have a deep dive into current operations and, if the issue is accountability or transparency, I think we can look at—‘Are they publishing their annual audited reports? Are they communicating that information to the citizens, if they have concerns?’” Qaddoura said.

Carmel Clay Public Library Director Bob Swanay noted that the city council approved its $29.9 million bond for a renovation project and timed it in a way that avoided a tax increase. That bond is scheduled to be repaid by 2040, he said, adding that the proposed legislation might shift that burden to Hamilton County.

“It was a successful partnership that Carmel library had with the City of Carmel and, to this day, we work closely with the City of Carmel in all kinds of ways. My concern is this bill would disrupt that long-standing and successful relationship,” Swanay told senators. “I believe that for many counties, this would be an unwanted burden and it does nothing to improve the efficiency of library operations in Indiana. It may do the opposite.”

In contrast to the experiences of senators, the Crown Point Community Library director, Julie Wendorf, detailed the steps she took to screen interested board members with local units of government.

“I ask for letters of intent for people that are interested in joining our board and I pass those along to my appointing bodies,” said Wendorf, who’s also the president of the Indiana Library Federation. “I would justify my choice … introduce that person to the elected body and then I’m present at their appointment voting and there to answer questions.”

In response to a question about the experience in other counties, where the oversight and appointments vary, Wendorf said it sounded “like there’s a little disconnect with county government … not realizing the powers that they already have over libraries.”

She pointed to a 2019 law that allows governing bodies to intervene with a proposed levy if a library’s cash on hand exceeds 150% of a proposed budget and also prohibits that unit from reducing funding for libraries by more than 10%.

The Senate Tax and Fiscal Policy Committee opted not to put the bill up for a vote, holding it back for potential amendments.