St. Joseph County's Libraries are facing major money problems right now. Their issue is a drop in funding because of Indiana's Property Tax reform.

Mary Warren of South Bend wants to know, "Why is South Bend building a new library branch on Cleveland near Portage when they are looking to cut library hours?"

New library construction is underway in St. Joseph County, including a brand new German Township branch off Cleveland Road. The building is happening even though right now St. Joseph County libraries face major financial problems.

“A lot of people have asked, ‘How can you be building while you're cutting?’" said Library Director Don Napoli. "They're two different budgets. The bond issue was approved before the state legislature did all of the property tax cutting."

The state of Indiana approved the new library which Napoli says will cost nearly $5 million. After the project was approved, property tax reform drastically cut St. Joseph County's incoming money. But Napoli says the money that's being used to build the new library can't be used to relieve the budget instead.

“The money is in the bank, and you can only spend it for the purpose of construction, you can't use bond money for operating expenses,” said Napoli.

Unless the state legislature makes changes or the local income tax is increased, St. Joseph County libraries expect to lose $1.8 million in funding in 2010.

To save money, Napoli says closing all libraries on Saturday except the downtown branch is now an option.

They may also choose to close on a weekday night.