Public Policy 10110 AM – 3:30 PM Friday, December 4, 2015

Monroe Township Library

Statutory and Regulatory Oversight

A Brief Introduction

Primary Sources of Regulation

New Jersey StatutesFor Establishment and Operation of Public Libraries

N.J.S.A Title 40: Municipalities & Counties

New Jersey Regulations For State Aid Requirements, Service Standards

N.J.A.C. Title 15: State

Four Types of Public Library Governance in New Jersey

County 14 Joint 5

Association 45

Municipal 234

Establishment of Public LibrariesMunicipal and joint municipal libraries are established by referendum

(NJSA 40:54-2, municipal; NJSA 40:54-29.6, joint municipal)

County library systems are established by referendum with two exceptions (NJSA 40:33-2, general, 12 county libraries;

NJSA 40:33-5.1, Cumberland; NJSA 40:33-15 Morris)

Association libraries are established according to the Nonprofit Corporation Act (NJSA 15A:1-1)

and become public by agreeing to accept public funds and serve the public (NJSA 40:54-35)

(NJSA Title 40: Municipalities & Counties)

NJ Library Law – Resources at the New Jersey State Library

http://www.njstatelib.org/services_for_libraries/resources/library_law/

Includes relevant state statutes (N.J.S.A)and regulations (N.J.A.C.)

Includes relevant state statutes and regulations (N.J.A.C.)

NJSL

Resources for Library Directors And Library Trustees

General LawsApplicable to Government Units

•Annual financial disclosure•Oath of office for new trustees/commissioners•Annual audit • Spending funds and disposal of public property•Government transparency

Purchasing Requirements

Excellent information for any purchasing questions may be found at the Department of Community Affairs Division of Local Government

Services webpage on Local Public Contracts Law: http://www.state.nj.us/dca/divisions/dlgs/programs/lpcl.html

See also: Part 6: Purchasing at http://lss.njstatelib.org/library_law

Note: Association libraries do not have to comply with purchasing requirements, but should as a “best practice” if they accept public funds.

Government Transparency

Open Public Meetings Act (Sunshine Act)

http://hpcpsdi.rutgers.edu/NJHPG/downloads/Sunshine%20Laws.pdf

Open Public Records Act (OPRA)

http://www.nj.gov/grc

Note: Association libraries do not have to comply with the requirements, but should as a “best practice” if they accept public funds.

Local Oversight• Municipal - Governed by Library Board of Trustees

Service agreements and shared responsibilities with municipality can lead to gray areas

• County – Generally governed by Library Commission

• Schools – Governed by Local Board of Education

• Academic – Governed by Institution

Federal Oversight• There is little in terms of federal regulation specifically regarding the

provision of library service• There are federally regulated programs that may impact – such as E-

rate services and internet protections for children• There are federal regulations on copyright, broadband, etc that may

pertain to services and activities• There are federal protections and case law regarding free speech • Attempts are being made to include school libraries within federal

education standards

How to keep informed• New directors and trustees familiarize themselves with, and occasionally

review, all pertinent Federal and State law

• Directors read New Jersey State Library communications pertaining to changes in the law (njpublibs listserv); keep trustees informed

• Join member organizations such as the New Jersey Library Association and the New Jersey Library Trustee Association

• Participate in training offered by NJSL, NJLA, NJLTA, LLNJ and ALA

• Hire appropriate professionals

Minimum 1/3 Funding• Public libraries in New Jersey are established by a referendum of the voters, per

N.J.S.A. 40:54-1 et seq.

• With the referendum, public libraries receive a dedicated minimum amount of funding to operate each year. Public libraries are not mandated by state government but rather created by the people.

• The statute that sets minimum funding for joint and municipal libraries at one third of a mill has been in place since 1884.

• Legislation passed in 2010 requires this funding to be presented to taxpayers in a transparent way on your tax bill.

Minimum funding for the library per New Jersey Statute, N.J.S.A 40:54-8

• The minimum funding statute for joint and municipal libraries (N.J.S.A. 40:54-8) sets the minimum funding rate at 33 cents on each $1,000 of equalized value of all assessable property in the town.

• This minimum funding amount is the total of what your local municipality must, at minimum, allocate in its budget, according to the law

• Any funding for your library above the minimum funding level will not be listed separately on your tax bill, but will remain part of the municipal budget. These additional funds are subject to the 2% levy cap

Equalized Valuation• Equalized valuation is the true value of real property within a local taxing district,

computed from the aggregate assessed valuation and actual sales of property, and used to distribute equitably State school and library aid, apportion county taxes, and measure municipal debt limits

• One-third mill is the equalized valuation times .000333333

• The State Library posts a spreadsheet every October which gives the equalized valuation and shows the minimum amount of local aid that the library must receive from the municipality for the next year to be in compliance with the law. The Department of Community Affairs also publishes the information every October.

More on Equalized Valuation (It’s Complicated)

• The principal part of the work of equalization lies in determining the aggregate true value of all real property in each of the state's 565 taxing districts. The assessment-sales ratio program involves a comparison of the sales prices of parcels of real property which have been sold with the assessed values of these properties.

• This figure is established by a program of assessment- sales ratio analysis. Procedures of sales data collection and analysis have been developed by the Property Administration Branch of the Division of Taxation but the success of the process requires the cooperation of every county board of taxation and every local tax assessor.

• Equalization is the leveling process by which aggregate assessed values of real property in a taxing district are brought to true value and that the true value assigned to an entire municipality is fair and just

It’s Really Complicated

The Directors Table of Equalized Valuations

The final product of the assessment sales ratio program is the

Directors Table of Equalized Valuations.

The table is prepared in columnar form and for each taxing

district displays the following:

• The aggregate assessed value of real property exclusive of

Class II RR property

• The average ratio of assessed to true value of the real

property

• The aggregate true value of real property

• Assessed value of Class II Railroad Property

• Assessed Value of all personal property

• The equalized valuation

Step I ONE YEAR WEIGHTED RATIO

Step II PRIOR YEAR ADJUSTED TRUE VALUE

Step III AVERAGE WEIGHTED RATIO

Step IV CALCULATION OF EQUALIZED

VALUATION Calculation of the Equalized Valuation

A conformed Table of Equalized Valuations is six

columns Column 1 Aggregate Assessed Value SR-3A is

divided by Column 2 Average Weighted Ratio to

arrive at Column 3 Aggregate True Value of Real

Property The Assessed Value of Class II Railroad Property

in Column 4 and the Assessed Value of Personal

Property used in Business in Column 5 are

added to the True Value of Real Property in

Column 3 to arrive at the Equalized Value of the

taxing district

But this minimum funding is critical• It establishes a base level of commitment to investment in library

services, as approved by the voters• It is unique to New Jersey• It is “self-correcting”• It is not ideal – but offers some protection and buffer – and NJLA is

fiercely protective of the minimum funding• NJLA has studied the issue several times over the years to seek more

stable funding for New Jersey’s public libraries