Greenwood Public Library Plans Ahead for Budget Cuts

GREENWOOD, Ind. — Libraries across Indiana are bracing for budget cuts as a new state law alters their primary funding sources, forcing them to consider a range of cost-saving measures from hiring freezes to reduced book collections.

Emily Ellis, the Executive Director at the Greenwood Library said they are already preparing for a future with less revenue. They explained that a new state bill, Senate Bill 1, is expected to create a gap of about $550,000 in their budget. The library anticipates an initial loss of $78,000 to $83,000 in property tax revenue alone over the next three years.

A New Funding Reality
The new legislation marks a major shift in how libraries are funded. Traditionally, Indiana libraries receive revenue from both property taxes and local income taxes (LIT). The Johnson County library reported that each of these sources accounts for roughly 40% of their budget.

According to Ellis, the law poses a serious threat to the local income tax portion of their funding. “As of 2027, we will have to ask for money for 2028. We will not be guaranteed anything,” they said, noting that while libraries currently receive a guaranteed minimum amount of LIT funding, that security will soon be gone.

This change means libraries will have to petition their county councils for the money, even in a best-case scenario where they receive the maximum amount, the total would still be less than what they currently receive.

Proactive Cuts and Public Outreach
In anticipation of the financial hit, the library has already implemented a hiring freeze. While the librarian’s previous position as assistant director will not be filled for the time being, they also anticipate cuts to other areas.

“There’s probably going to be cuts to our book budget next year,” Ellis explained. “There’s still going to be plenty of books on the shelf, but you might have to wait a little longer for books, especially eBooks.”

The state requires libraries to spend a minimum of 8% of their budget on collections, and the library expects to drop from its usual 11-12% spending down to that minimum. In the worst-case scenario, Ellis noted that the library may have to consider cutting staff and reducing hours.

“We hate to even think about that because we’re here to serve the community and if we’re not open, how can we do that?” they said.

The library is now working with the Johnson County Public Library to encourage residents to get involved through volunteer initiatives and donations. Their goal is to build a “community army of supporters” who can advocate for the library when they must go before the County Council to ask for funding. Ellis stressed the importance of public awareness, explaining that most residents are not aware of how their libraries are funded.

“The goal is to just be as transparent as possible,” she said. “If we have to make a change, we’re going to tell you what that is and exactly why we have to make that change.”

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