California’s state librarian is facing growing scrutiny from lawmakers after roughly $650,000 connected to a statewide literacy initiative linked to Dolly Parton’s Imagination Library could not be fully accounted for during a recent legislative review.
The issue emerged during a Thursday hearing of the California Senate Budget and Fiscal Review Subcommittee No. 1 on Education, where legislators examined how state funds were distributed for participation in the well-known book-gifting program.
Dolly Parton’s Imagination Library provides free books to young children in an effort to promote early literacy. The program has been widely adopted by states and communities across the country and typically operates through partnerships with local nonprofits that help administer the initiative.
According to documents presented to the subcommittee, a nonprofit organization called the Strong Reader Partnership was established to assist with administering California’s involvement in the program.
However, discrepancies in financial documentation raised concerns among lawmakers.
Subcommittee records indicate that the nonprofit reported spending approximately $1.2 million in program funds. Yet bank statements provided to Senate budget staff showed only about $555,000 in documented expenditures. That gap leaves roughly $649,000 without supporting documentation explaining how the money was spent.
“I find this to be incredibly concerning,” said state Sen. Sasha Renée Pérez, a Democrat from Pasadena who chairs the subcommittee. “There’s $650,000 that’s been unaccounted for in a program, a bipartisan effort that was intended to increase literacy among children. This is incredibly serious.”
Republican state Sen. Shannon Grove of Bakersfield also expressed alarm during the hearing, saying the lack of clear documentation raised questions about oversight and transparency.
“That makes no sense,” Grove said. “And that reeks of horrific no transparency and potential fraud.”
Lawmakers said Senate budget staff had repeatedly requested financial documentation from the Strong Reader Partnership in an effort to verify how the funds were used. Requests included receipts, invoices, and additional bank records to support the nonprofit’s reported spending.
According to the subcommittee, those requests were made multiple times between November 2025 and February 2026 but the documentation had not yet been provided.
During the hearing, California State Librarian Greg Lucas acknowledged that lawmakers had received bank statements showing approximately $555,000 in expenditures. However, he pushed back against claims that the remaining funds were simply missing.
“I don’t believe that’s correct,” Lucas told lawmakers. “We received a final report on the disposition of the money by the Strong Reader Partnership.”
Lucas explained that the nonprofit had reported difficulty obtaining additional financial documentation because the partnership no longer has remaining funds or active members after transferring the money to the Imagination Library program.
He said the state library has continued requesting records from the nonprofit and intends to keep pressing for the documentation.
In a statement provided to ABC10, a spokesperson for the California State Library said the agency is cooperating with legislative oversight efforts.
“The California State Library takes seriously its responsibility to ensure transparency and accountability in the taxpayer dollars entrusted to it,” the statement said. “The State Library has provided the Legislature with all documentation in its possession and has repeatedly requested additional records from the Strong Reader partnership.”
Subcommittee chair Pérez gave Lucas seven days to produce additional financial records. Lawmakers said they expect invoices and receipts that clearly detail how the program funds were spent.
