Hello all,

As you may know, on March 1st sequestration was ordered; a series of automatic across-the-board cuts to federal government agencies, totaling $85 billion in reductions that must be achieved by September 30, 2013.   For non-defense discretionary accounts, including the Institute of Museum and Library Services (IMLS), this computes to a 5.0% annual reduction from current funding levels.

Sequestration will affect all IMLS programs, including the FFY2013 LSTA funds passed to states.  The Oregon State Library will not know the amount of our final LSTA allocation until the IMLS receives a full-year FY2013 appropriation.  

The more problematic of the issues facing FFY2013 LSTA funding is that Congress has not yet passed a budget – at the moment the Federal Government is being funded on a continuing resolution with expires March 27, 2013.  IMLS is not able to award the rest of our LSTA funds past the end of the continuing resolution.  We are reluctant to start most competitive grant projects until we are certain funds exist to completely pay for them.   We appreciate your patience with the delayed start of your grants, and will keep you posted as the situation develops.

Sequestration and continuing resolutions do not impact the expenditure of FFY2012 funds, so projects that are finishing extensions should aim to zero out grants soon.

If you have any questions, please contact me.

Yours,

Ann

Ann Reed, Federal Programs Coordinator

Oregon State Library

Library Development Services

250 Winter St.

Salem, OR 97301

ann.reed@state.or.us

phone 503-378-5027

fax 503-378-6439

http://www.oregon.gov/OSL/LD/