Funding and Budget FAQs

• Where do public libraries get their funding?

  In general, the source of public library funding is dependent on the type of library system. In Washington, single-county and intercounty regional libraries are special purpose taxing districts that derive their funding from local property taxes. Municipal (city) libraries may be single or multi-branch systems that operate as a city department and are funded through city government appropriations.

  Timberland Regional Library is an intercounty rural library district with many cities throughout the 5-county region annexed to the district for library service. Our funding is primarily derived from local property taxes with a small percentage of timber revenue. Timber revenue refers to timber excise taxes, Department of Natural Resources trusts, county and State Forest Board timber sales and other related sources. 

  The Municipal Research and Services Center (MRSC) provides a comprehensive list of library types throughout the state.

   

• Why was a budget shortfall announced in early 2026?

  We understand that the announcement of the anticipated budget shortfall in 2026 feels sudden. The immediate issue at hand is that TRL had fallen out of compliance with the Fund Balance Management Policy, which requires "a minimum beginning assigned fund balance of thirty percent (30%)."  

  In recent years, even when expenditures had begun to exceed revenues, the beginning fund balance remained within policy requirements: 38.7% in 2022, 43.6% in 2023, 38.8% in 2024, and 31.6% in 2025. TRL's fiscal close process occurs in January for the prior year. For this reason, it was unclear until then that the library would be below the 30% beginning fund balance threshold. Because the policy requires a plan to restore the balance, the Board of Trustees was immediately notified, and leadership began working on a plan to address the shortfall. In terms of this specific action, it would not have been possible to provide notification prior to the fiscal close process. Additionally, TRL received a large tax revenue disbursement in the fall of more than $9.8 million, so it was not apparent any earlier that a potential shortfall was imminent.  

  Although we could not predict the exact timing of the shortfall to the beginning fund balance and need for restoration, TRL has been adjusting operations in light of increasing costs and declining revenue for many years, as noted in the budget message from Executive Director Cheryl Heywood. 

• How are budget priorities decided each year?

  Budgeting is a continuous process that is guided by the Library’s Strategic Direction and informed by our Mission, Vision and Values. Library staff work collaboratively with district leadership to plan future projects and identify needs and opportunities that have financial impacts.

  Every summer, information is collected and submitted to TRL’s Finance staff who review anticipated needs with Library Administration. Together, they prepare a budget estimate for the year ahead that is presented for approval to the Board of Trustees. This budget estimate combines the estimated total cost to run each individual branch and department.

  As required by law, the TRL Board of Trustees holds a budget hearing each November prior to the adoption of next year’s budget, typically in December.

• Why is TRL planning for staffing reductions?

  At approximately 68% over the last six years, the largest proportion of annual expenditures is dedicated to salaries and benefits. In recent years, TRL has begun utilizing new technologies to allow us to maintain library access with fewer staffing resources in an attempt to minimize the impact on the public and maintain access to library services. We have also succeeded in capturing some savings through departmental reorganization, consolidation of positions, and attrition.  

  Cost savings have been achieved in other areas as well. However, unlike supplies, equipment, materials, and programming, staffing costs are an ongoing expense that must be part of the conversation about cost reductions in order to ensure long-term sustainability.  

  This is a difficult reality because libraries and library staff provide deeply meaningful services and support that are very often not available elsewhere in the communities we serve. In frontline and behind-the-scenes roles, library staff perform valuable and multifaceted work on a daily basis, and TRL Administration has worked collaboratively with the Union and the Board of Trustees to compensate staff fairly for the dynamic and often challenging nature of public library work. Even so, library usage trends have changed significantly in recent decades and continue to evolve. As such, it is essential that we adjust our operations and staffing levels to correctly reflect what is needed to provide core services to the public within our means.  

• Did library Administration get large raises in 2026?

  No. In 2026, all represented staff received a 2.7% COLA consistent with the 2026-2028 Collective Bargaining Agreement. Wages and benefits were bargained and agreed upon within parameters set by the Board of Trustees. All non-represented staff, including Administration, but excluding the Executive Director, received the same 2.7% COLA for the 2026 budget year.  

  It is important to clarify that the Annual Budget document reflects what was spent on a specific position in the prior year and what is budgeted for that position in the upcoming year. Comparing these numbers will not necessarily reflect a percentage change that matches the COLA. This is because what is expended or budgeted for a position may not be indicative of the salary for a specific employee in that position.  

  For example, a position may be vacated by an employee and later filled by another employee who starts the lower end of the pay range. What is spent on that position in the preceding year would then reflect two individual salaries and would not directly relate to what is budgeted for it in the upcoming year. Similarly, an employee receiving Washington Paid Family Medical Leave (PFML) benefits for part of the year (thus, not being paid by TRL) could cause the salary for their position to appear as though it was increased by more than it was year-to-year. Positions can also be created midway through the year or reclassified, included in department reorganization or, where it affects represented staff, subject to impact bargaining that would have bearing on an individual’s salary.  

  In summary, the Annual Budget is useful for determining what was spent or budgeted for a position but will not necessarily be indicative of any individual employee’s salary.  

  The Executive Director’s compensation package is handled separately by the Board of Trustees and included a 3% COLA for 2026.  

• Is TRL planning to pursue a levy lid lift to address the budget shortfall?

  In short, yes. At some point in the future, it will be necessary to pursue a levy lid lift to avoid further reductions to library services.  

  However, a levy lid lift is not an immediate solution, and its approval is not guaranteed. Depending on the election cycle, it can cost as much as $1 million to get on the ballot in all five counties served by TRL. The Board of Trustees would need to authorize and approve this expense.  

  TRL last requested a levy lid lift during the February 2009 Special Election, proposing to restore the District’s regular property tax levy of $.50 per $1,000 assessed valuation. The measure was unsuccessful with 45.14% of voters voting to Approve and 54.86% voting to reject the proposed increase. 

  We greatly appreciate the support of community members who have urged a levy lid lift and indicated that they would vote in favor. We also acknowledge that the financial pressures that we are facing as an organization are also felt by individuals and families across our service area. City, county, and state government, as well as local schools and other independent taxing districts are also struggling with rising costs and falling revenues due to factors outside of our immediate control. We are mindful of this reality and must thoughtfully consider any future ballot measure to request and an increase to the library’s levy rate.  

• Why did TRL spend money on library renovations if a budget shortfall was expected?

  Most renovations and remodels to library branches are paid for from the Building Fund. In some cases, projects can utilize dedicated gift funds or are completed in partnership with cities. For additional information about special purpose funds visit: https://trl.org/budget/  

  The Building Fund budget is approved by the Board of Trustees and is utilized for one-time expenses as part of capital projects at TRL-owned buildings and approved projects at City-owned buildings throughout the district. It fluctuates from year-to-year depending on expected projects, anticipated building needs, and the availability of funds.   

  TRL believes in the importance of re-investing public funds in the communities we serve. While we acknowledge the necessity of working to anticipate long-term financial trends, accumulating excessive reserves is a disservice to patrons whose tax dollars support the library. TRL leadership strongly believes that responsible stewardship of financial resources includes providing modern, inviting and accessible spaces at all libraries and has used the Building Fund to support this investment in our communities’ access to physical spaces. 

• How are my property taxes spent?

  This varies by location, but statewide, 56.7% of property taxes were used to finance schools in 2024. Counties received 14.5%, cities received 11.5%,, and junior taxing districts such as fire districts, ports and libraries shared 16.2% (source). 

  The Washington State Department of Revenue provides helpful information about how property taxes are calculated and spent as well as the effect of the 1% levy limit on increases in property taxes.

• How much library funding comes from local vs. state or federal sources?

  Funding sources vary between library districts, but federal and state funding for public libraries is generally limited. For example, in 2026 TRL's revenue was 93.7% property tax and 5.4% timber sale revenue.

  Though it has come under threat recently, state support, via the Washington State Library (WSL), and federal funding via the Institute of Museum & Library Services (IMLS) supports crucial programs for children and teens, job seekers and rural and tribal communities throughout the state.

  Additionally, TRL receives a substantial discount of 70% on internet costs through a federal program known as E-Rate, which is based on the free and reduced lunch levels (a key poverty indicator) of our five-county district.

• Does TRL receive any private donations or grants?

  Yes. TRL is grateful for the donations we receive from community members. In some instances, donors request that their gifts be designated for use by a specific branch or for a special purpose. In others, donations are given to Timberland as a whole. Due to the fact that they are limited and non-recurring, gift funds are used for one-time expenditures. They can be used to supplement library services, programs and collections, or utilized to support building updates, renovations and remodels.

  To learn more about how you can donate to TRL visit: https://trl.org/donate/

  TRL also pursues grant funding opportunities where they align with the Library's goals and capabilities.