New Policy Brief - Caution & Concerns: Potential Effects of Indiana Senate Bill 283 (2025) on County Governance and Finances

The Indiana State Senate is currently reviewing Senate Bill 283 (2025), a sweeping proposal that would eliminate public libraries’ status as municipal corporations and shift their governance, financial, and operational responsibilities to county governments. The EveryLibrary Institute’s policy brief, titled Caution & Concerns: Potential Effects of Indiana Senate Bill 283 on County Governance and Finance, highlights the significant and largely unexplored implications of this bill.

As introduced, Indiana SB283 (2025) proposes to:

  • Strip libraries of their municipal-corporation status, ending their ability to levy taxes independently, own property, and manage contracts.
  • Transfer all fiduciary responsibilities of library boards—such as budgeting, debt management, and workforce oversight—to county governments.
  • Require counties to absorb library assets, liabilities, and operations on July 1, 2025, effectively mandating an overnight transition.

Download the Word or PDF Version of "Caution & Concerns: Potential Effects of Indiana
Senate Bill 283 (2025) on County Governance and Finance"


Indiana Counties Are Not Ready for the changes mandated by SB283. This report emphasizes that this abrupt shift would create administrative, legal, and financial chaos for counties, as they inherit responsibilities they are not prepared to manage. Consider these key issues:

Bond Obligations
Many Indiana libraries have issued bonds for facility renovations or capital improvements. If SB 283 is enacted, counties would inherit these debts. However, the legislation offers no clear mechanism for refinancing or managing these obligations. This creates risks for counties’ credit ratings and could trigger technical defaults if bondholders reject the transition.

Property Ownership and Deferred Maintenance
Counties would take control of library buildings and property, inheriting all responsibilities for upkeep, renovations, and compliance with safety codes. For libraries with significant deferred maintenance or ongoing construction projects, this presents an immediate financial burden.

Workforce Integration
Thousands of library employees would become county employees overnight, requiring the integration of distinct pay scales, job classifications, and benefit structures. The potential for mismatched policies—particularly with retirement plans like PERF—could lead to administrative delays and dissatisfaction among staff.

Service Disruption
Libraries are specialized institutions with unique vendor relationships, IT systems, and collection-management practices. Transferring these operations to counties risks delays, service gaps, and even the loss of programs that communities depend on.

While SB 283 is specific to Indiana, the concerns it raises resonate nationwide. Similar legislative efforts to centralize library governance often overlook the specialized nature of library operations and the community trust built through independent oversight. Library professionals in other states should monitor this case closely and advocate for thoughtful, inclusive policymaking when public libraries are at stake.

The EveryLibrary Institute urges Indiana legislators to consult with counties and library boards before advancing SB283. Without a detailed transition roadmap and input from all stakeholders, the bill risks irreparable harm to already stretched-thin county governments.


To read the full report, please download it as a Word doc or PDF. 

"Caution & Concerns: Potential Effects of Indiana
Senate Bill 283 (2025) on County Governance and Finance"

Word Version      PDF Version