The Financial Backbone of Your Public Library

While digital products have infinite lending potential, publishers and vendors control access through these models. Libraries constantly balance these constraints against budget limitations.

Funding for public libraries is a constant challenge and often a point of controversy, especially in today’s polarized political climate. Each system is different, but nearly all public libraries rely on local taxes. While other revenue streams can vary depending on the region, local taxes account for the lion’s share of library funding. According to American Libraries Magazine, universally, library revenue breaks down like this:

Local Taxes: 70%

State Grants: 10%

Donations and Sponsorships: 5%

Fees: 3%

Federal Grants: 2%

Fundraising Events: 2%

ANDREW CARNEGIE

Carnegie used his fortunes
to build 2,500 libraries across America. He did so because, he believed, “A library outranks any other one thing a community can do to benefit its people. It is a never-failing spring in the desert.”

There’s something about the smell of the stacks that takes me right back to my childhood. Growing up in a small town in northern Illinois, trips to the library were a regular part of my life. I read the entire children’s library, cover to cover — discovering The Hardy Boys, the Chronicle of Narnia, Charlotte’s Web, Pippi Longstocking, and the quirky, relatable characters of Judy Blume.

More recently, libraries have had to adjust their offerings. Childhood memories of the local public library certainly linger in the minds of many, but times have changed since the days we carried home stacks of books. Digital content and internet access are now staples in most systems across the country. The coronavirus pandemic pushed changes further, turning libraries into hubs for public information, including vital health updates. Since then, many libraries have added community spaces for public education, business development, and more. During the disastrous flooding in Asheville, North Carolina, from Hurricane Helene in the fall of 2024, people gathered around the only working WiFi — at the Asheville Public Library.

And we thought just keeping the latest and best books in rotation was complicated. With all of that, how do public libraries function?

How the books get in

Library books come from many sources, and acquisition is more nuanced than most people realize. Acquisition librarians — either at the system or branch levels — rely on distributors like Baker and Taylor or Ingram, which supply a steady range of titles from major publishers and independent presses. These distributors often provide curated lists, bestsellers, and backlist titles. Libraries also place direct orders with publishers when necessary.

Community input is an essential part of the acquisition process, too. Good acquisition librarians take patron suggestions, and if a book fits within the budget and is relevant, it’s often added to the collection.

Librarians also rely on other industry pros. Publications like Library Journal or Kirkus Reviews are valuable resources. Plus, librarians often collaborate to make decisions based on demand and collection diversity.

E-books and digital resources come from different vendors like OverDrive or Hoopla, which have their own licensing models. Library purchasers weigh community interest in print versus digital formats and the cost of multiple licenses to maximize the often-limited budget.

How the books get out

Did your favorite book, Ye Olde Remedies for Common Ailments: A Handbook of Leeches, Lard, and Laudanum, disappear from the shelves after all these years?

There are several reasons books might be pulled from circulation.

Condition: Damaged books are removed. If demand is high, a replacement copy may be purchased.

Outdated Information: Particularly in nonfiction areas like science, technology, health, or law, books may be removed if the information is no longer accurate.

Low Circulation: Books that haven’t been checked out in a long time may be removed to make space for new, more popular titles.

Relevance to Community Needs: Some books may no longer align with the library’s mission or reflect the community’s interests or values.

Duplicates: Excess copies of books that were once in high demand might be removed as demand wanes.

Once a book is pulled, its fate could be one of several options.

Donated: Many withdrawn books are donated to local nonprofits or schools.

Sold: Libraries often hold annual book sales, with proceeds going back into the acquisition budget.

Transferred or Stored: Some books are transferred to other branches or archived if they are still valuable but have low circulation.

Recycled or Disposed: As a last resort, books are recycled or discarded.

So, if you’re still on the lookout for Ye Olde Remedies, check your local library’s annual sale — you might just find it there.

E-books, Audiobooks, and the Library’s Digital Dilemma

Most public libraries now invest in digital resources, but unlike physical books, digital materials are licensed, not owned. Libraries must navigate several licensing models:

One Copy/One User: Similar to physical books, where a single digital copy is loaned to one user at a time. Bestselling e-books and audiobooks use this model.

Metered Access (Time-Based): Allows unlimited checkouts for
a set period, usually one or two years. After that, the license must be repurchased.

Metered Access (Checkout-Based): The library purchases a license for a set number of checkouts, typically 26 or 52, after which the license must be renewed. This mimics the wear and tear of physical books.

Simultaneous Use: Often used for educational resources or lesser-known titles, allowing an unlimited number of patrons to access the material at once.