State librarian asks lawmakers to resist shifting pension costs as library aid rises

Department of Legislative Services analyst Natalie Andrade told the Education, Business and Administration Subcommittee that the Maryland State Library Agency's proposed FY27 allowance totals $112.6 million, a $2.4 million (2.2%) increase over fiscal 2026.

State Librarian (identified in the agenda as Morgan L. Miller) and Chief Financial and Operating Officer Donna Liberto described how most of the MSLA increase funds public library aid, retirement contributions, and the state network. Liberto and Miller told lawmakers that public library aid makes up roughly half of the allowance, with additional funding for fringe benefits and the state library network. The budget includes two new education program specialist positions tied to administration of the Deaf Culture Digital Library.

Miller said the Young Readers programs have experienced a 41% increase in enrollment since the last General Assembly report and now serve more than 55,000 children. To meet demand, MSLA said the FY27 proposal increases funding for the Baltimore City Young Readers Program and the Young Readers Matching Grant Program by amounts that exceed statutory mandates and would provide a 30% across-the-board increase in program funding.

DLS flagged a contingent $722,000 general fund reduction in FY27 tied to pending legislation that would require local governments to share in increased retirement costs; DLS recommended shifting the state share of librarian retirement costs to local jurisdictions but MSLA said that shifting 100% of the FY27 pension increase to counties would have a negative impact on library systems and local service levels. The State Librarian said local budgets are already stressed and that passing the full cost to counties could drive reductions in local library services.

Lawmakers asked MSLA to explain a $220,000 FY26 deficiency related to Montgomery County retirement costs and to describe whether a similar increase is likely in future years. DLS also asked MSLA to explain the intended use of additional Young Readers funds; MSLA said the funds will increase support for affiliates and relieve pressure caused by rising enrollment and higher per-unit book costs.

MSLA directors said that digital-material pricing by publishers is a major driver of unmet digital demand and that local systems retain discretion over collection choices.

The committee did not record any formal vote; DLS recommended concurrence with the Governor's allowance and requested further explanation of retirement-cost drivers and program plans.