Indiana public libraries are entering a period of uncertainty. With Senate Enrolled Act 1 (SEA 1) now law, changes to property tax growth and Local Income Tax (LIT) distributions will make it harder for libraries—especially in rural counties and cities like Indianapolis and Fort Wayne—to count on steady revenue. Budget pressures are real, and libraries must act now.
What SEA 1 Changes Mean for Library Budgets in Indiana
- Property tax revenue growth is frozen, meaning little to no increase in funds, even as operating costs rise.
- LIT allocations now require county approval, introducing uncertainty for libraries relying on those funds.
- Federal and state cuts—from IMLS to digital program support—are compounding the impact on already tight budgets.
How Indiana Libraries Are Adapting
- Budget reviews and belt-tightening: Re-evaluating contracts, pausing non-essential purchases, and maximizing staff roles.
- Community engagement: Using newsletters and events to keep patrons informed and inspired to advocate.
- Service prioritization: Focusing on essential programming and maintaining digital offerings.
E-rate Can Help—If You Plan Ahead
One bright spot: the E-rate program. This federal resource offers major discounts on internet access and internal tech infrastructure. If you joined the recent webinar, you know how strategic planning around E-rate can preserve—and even improve—library tech in tough times. Libraries that lean into E-rate funding can maintain digital access without relying solely on local tax revenues. Applications for the next cycle open soon—get prepared.
What Every Indiana Public Library Should Do Right Now
- Quantify your exposure – How much funding comes from property taxes, LIT, and other external sources?
- Create contingency plans – Identify essential services and flexible spending areas.
- Strengthen local relationships – Engage with patrons and public officials early and often.
- Safeguard tech and digital access – Focus on resources patrons rely on most.
- Leverage E-rate – Start preparing now to make the most of this federal funding opportunity.
Conclusion
SEA 1 may bring new budget constraints, but it doesn’t have to mean service setbacks. Libraries that plan ahead, engage their communities, and lean into smart funding tools like E-rate can continue to grow trust and impact—no matter the fiscal climate.
At AVC, we help Indiana libraries optimize their IT strategy and funding plans. From navigating E-rate to forecasting your tech costs, we make sure you’re not just surviving—but thriving.