Fiscal trends in 2024 showed mixed results, from robust forward motion to defunding—with more uncertainty ahead

As the United States adjusts to the changes brought about by the new presidential administration, the economic forecast feels cloudy. While only time will tell if the country experiences the benefits promised during election season, public libraries rely on funding structures that are in flux.

LJ’s 2025 Budgets and Funding Survey, sponsored by Baker & Taylor and Hoopla, received responses from 292 U.S. public libraries between November 17, 2024 and January 10, 2025. The sample was divided among 40 percent suburban libraries, 40 percent rural, 39 percent small town, and 17 percent urban (percentages total more than 100 percent as some responding libraries serve more than one type of municipal region). Eight of the libraries in the survey serve a population of 1 million or more, and 101 serve communities with fewer than 10,000 residents.

Compared with the previous year’s survey, where data indicated forward momentum in all areas related to public library budgets, the 2025 survey shows a more varied funding landscape. Some libraries reported secure and even improving financial outlooks, while others have come under attack in the form of partially or entirely defunded library budgets. Communities have been battling on both sides of the censorship/anti–intellectual freedom issue (see “On the Books: Library Legislation 2024”), and the effects can be seen in the polls; the pass rate was 80 percent for libraries with measures on the November 2024 ballot, down from a 10-year average of 90 percent wins (for a more detailed look at last year’s library referenda, see “Renewals to Rededications: Libraries on the Ballot 2024,” pp. 26–28).

State funding was down 9.2 percent this year, largely across all responding regions, and the overall net change in local funding saw a minimal increase of .7 percent, the smallest year-over-year change since 2015 (net growth in 2023 local funding, as reported in last year’s survey, was 5.2 percent).

OPERATIONAL INCREASES FOR SOME

While 2024’s operating budgets were up by 3.5 percent, this is less than half of the 7.9 percent increase libraries saw in 2023. Some larger, urban libraries reported boosts in funding thanks to property tax increases. The Miami-Dade Public Library System, FL, “experienced a 10.4 percent increase ($10.587 million) in increased revenue from the previous fiscal year’s budget as a result of an increase in property tax values,” according to Director Ray Baker. Migell Acosta, director of the San Diego County Library, CA, also noted an increase “due to assessed growth in property values,” as did the Las Vegas–Clark County Library District, NV, and smaller libraries in Colorado, Michigan, Texas, and Missouri. Good news is on the horizon for one New York state library that reported “operating on an austerity budget for the previous four years…. The 2025 budget includes a significant increase in the tax levy, which was approved by voters.”

Overall, 86 percent of responding libraries expected an increase in total operating budgets this year, though not all states are experiencing this boon. Cristine Braddy, director of the Goshen County Library, WY, shared the opposite outlook: “Wyoming has decreased property tax and created exemption programs; this will decrease our allotment from the county. Currently, we don’t have an exact amount. In the coming year, we will rely heavily on grant writing and fundraising.” The survey revealed a 47 percent negative difference in funding between independent library districts (with a mean FY operating budget of $11,833,294) and those libraries subject to local budget appropriation (mean FY operating budget of $6,250,644), as is the case in Goshen.

Looking ahead to the 2024/2025 fiscal year, libraries in the survey remained positive about operating budget projections, with 66 percent predicting an increase. Libraries that serve populations of more than 500,000 anticipated the largest increase in operating budget, at 7.3 percent, with rural libraries predicting a notably lower 4.6 percent increase. Regionally, libraries in the Northeast anticipate the greatest operations budget increase, and libraries in the West/Mountain region expect the largest decrease.

INVESTING IN PERSONNEL—TO AN EXTENT

When asked to list their library’s top three budget priorities for the next year, 86 percent of respondents reported that payroll/staffing/benefits take the top spot. With slightly more than 60 percent of total operating budgets going toward personnel, these budgets rose by 6 percent in 2024, falling short of the 9.4 percent boost reported in the previous year’s survey. Overall average FTE spending with benefits came down from $74,832 to $73,390, and several libraries reported staff cuts or eliminating positions due to attrition, as was the case for one Pennsylvania library that needed to cut “25 percent of our staff in 2024 due to budget shortfall in order to move toward a balanced budget in 2025.”

Still, numerous libraries across the country reported salary increases to reflect cost of living, as well as recognition of previously below-market salaries. One library in Massachusetts stated, “The town recognized community-wide under-par salary levels and made adjustments beyond [cost of living],” resulting in 10 percent raises. Libraries in New Hampshire, Utah, and Wisconsin were also able to increase spending on personnel; an upstate New York library increased salaries “due to settlements with three bargaining units.”

While strong salaries are crucial for recruiting and retaining library staff, appropriate professional development budgets also indicate support for personnel across an organization. Unfortunately, the 2024 survey reveals cuts in professional development budgets for the third consecutive year, with a 3 percent decline in professional development budgets (from 93 percent to 90 percent), and total average monies spent on professional development down by 6 percent, $27,600 to $26,044. Libraries are looking to grants from both state and federal sources to support professional development or staff training, such as a library in Illinois that received $17,000 from the state’s Public Library Per Capita and Equalization Aid Grants program.

LOOKING BEYOND THE BUDGET FOR COLLECTIONS

Spending on materials comes in as the second budget priority for responding libraries, and 60 percent expect an increase in circulation this year. However, overall materials budgets in this sample have decreased by 4.3 percent, leading some organizations to look for alternate funding to support collections. The number of libraries receiving federal or state grants was up to 60 percent from 55 percent in 2023, and the majority plans to spend it on materials. One Pennsylvania library received a $5,000 collections-focused grant through the Library Services and Technology Act (LSTA), with other libraries using a mix of state grants to purchase materials and support other library programs.

Per capita circulation continues a downward trend observed for two consecutive years (an average of 7.45 per capita circulation in 2024, down from 7.86 in 2023). The Babylon Public Library, NY, decreased its materials budget owing to changes in preferred formats, according to Director Thomas Vitale. “We stopped purchasing music compact discs and physical audiobooks,” he wrote. “These items are becoming obsolete and exist in our digital collections.” A library in Massachusetts reported similar shifts, reducing physical collections funding to further support digital purchases.

In 2024, digital collections were considered a top-three budget priority by 14 percent of survey participants, with one Pennsylvania library stating that “electronic resources (specifically ebooks and streaming media) need to be increased based on popularity.” Public libraries allocated an average of 28 percent of their materials spending toward digital materials, a slight increase over 2023’s 27.2 percent. Nearly half of libraries (49 percent) reported no change over the previous year in the percentage of their budget dedicated to digital materials, but a significant 46 percent reported an increase. Urban and suburban libraries (39 percent and 36 percent, respectively) devoted the largest portion of their materials budget to digital content. Miami-Dade County Public Library’s Baker noted that “it remains difficult to purchase enough [digital content] to fully meet demand. We will likely keep the budget flat for physical materials and allocate more towards digital.”

Grants prove to be valuable sources of funding for increasing digital holdings; for example, a $3,500 state library grant helped a library in Connecticut add more “electronic databases and downloadables.”

CONNECTING COMMUNITY

Libraries spent an increased 15 percent on technology this year, with an average spend of $467,187 compared to 2023’s $408,100. More than one-third of survey participants—37 percent—were planning a major investment in technology, with the most commonly reported purchase being new enterprise software such as integrated library systems. Twenty-three percent of tech spending was allocated for hardware purchases like desktop computers, laptops, 3-D printers, and scanners. The Wichita Public Library, KS, will develop mobile laptop labs, according to director Jaime Nix, and libraries in multiple states planned desktop computer refreshes for both patrons and staff-facing machines.

An additional eight percent were planning large hardware purchases like digital kiosks, such as one Louisiana library that is buying AutoLend kiosks for a newly opened branch library. A Connecticut library noted a large purchase of self-service lockers. Nineteen percent of technology budgets were earmarked for software outside an ILS, and 18 percent of funds were allotted to support enhancements in internet and Wi-Fi connectivity. Libraries are also using technology budgets to develop or continue operating makerspaces, where spending crosses all categories of equipment, software, and material supplies.

While many library workers will equate spending on staff, materials, and technology as crucial components for outreach services, what is specifically called an “outreach budget” has declined this year. Fewer than half (44 percent) of public libraries reported spending money on outreach. This spend averaged $104,950 overall, down 12 percent from 2023’s average of $119,300. Just over a quarter—27 percent (down from 32 percent last year)—do plan to increase spending on outreach, as is the case with Grapevine Public Library, TX, where Assistant Library Director Chad Hetterley reported budgeting for new homebound outreach services. A Connecticut library planned to use state grant funds to increase services to low-income communities.

Donations from library Friends groups and foundations are often utilized for outreach services; Friends group donations were up 22 percent in in 2024, though net foundation money was down by 14 percent. Individual and corporate gifts were

received by only 44 percent of libraries this year, significantly down from 61 percent in 2023. Friends groups are mission-aligned advocates for public library services, so it is heartening to see the increase in their support, especially when reviewing the crisis points many library directors have faced (see “Directors Under Attack”).

As public libraries continue to find ways to best connect with their communities, the 2 percent increase in open hours, with of an average 54.3 open hours per week, was encouraging. This not only tops pandemic-era hours, which were significantly down from pre-pandemic numbers (libraries reported an average of 34.6 open hours in 2020), but is also the highest recorded point since 2017’s 52.8 open hours. Eleven percent of responding libraries reported an increase in hours from last year, with even the smallest libraries, serving populations below 10,000, adding nearly four open hours per week across their system, or five additional hours per location. The larger systems in the sample, with service populations of over 500,000, saw a total of 266.4 hours added over the entirety of the system, with an average of 6.5 hours added per location.

Three percent of libraries did report a decrease in hours; one library in Pennsylvania noted that due to an approximately $50,000 operating budget decrease it would need to cut back in all areas of spending, including operating hours and staffing.

BUDGETARY SIGN OF THE TIMES

One final—but increasingly critical—area of budget growth reported in 2024 is the amount of money public libraries are spending on advocacy and/or lobbying services. In 2023, 7 percent reported spending in this area, and in 2024 this grew to 12 percent. Among those dedicating funds for advocacy and lobbying, half mentioned they currently use funds for membership to (or in support of) both local and nationwide councils and organizations that represent library interests. A Washington state library noted that “we pay dues to Public Libraries of Washington, which pays for a legislative lobbyist.” Other libraries have directly contracted for these services. A Missouri library shared that they are supporting the larger library advocacy ecosystem: “With recent legislation, our board has decided in the last two years to spend funds on a lobbying consultant to help advocate for libraries in our state.” Other libraries are spending on advocacy training for board members and trustees, with one Florida library wrapping this into its general trustee training and travel budget.

At the time of publication, there is concern about the future of federal grant programs like those delivered by LSTA and the Institute of Museum and Library Services. States such as Wyoming and Alabama are withdrawing memberships in statewide library organizations as well as from the American Library Association. If funds and support to libraries dwindle as threats to the overall U.S. economy loom, next year’s budget survey could reveal a new set of troubling trends—coming at a time when the country may need its libraries most.

April Witteveen is the library director at the Oregon State University–Cascades campus in Bend, OR.