Schlow Library receives annual appropriations from the Centre Region Council of Governments municipalities (State College Borough, College, Ferguson, Halfmoon, Harris and Patton Townships), Centre County government, and the Commonwealth of Pennsylvania.
Schlow receives three types of state aid through the PA Department of Education - compensation for lending items  to Pennsylvanians who live outside Schlow's service area (statewide card reimbursement), state aid as a local public library and member of a library system, and district center aid in Schlow's role as a district center library for the Central Pennsylvania Library District. State aid is calculated using population and local financial effort. In the case of the statewide card reimbursement, use statistics are the measure.
Most state aid and county funds flow through the Centre County Federation of Public Libraries, which disburses funds to Schlow Library and Centre County Library according to an agreed upon formula. State aid is 31% of the library's income; county funds make up another 8%.
Funding from the Centre Region municipalities accounts for about 51% of all the library's income. Municipal shares of the local government income are based on the percentage of use from the municipalites. If 15% of all library checkouts one year are made by residents of a particular township, then that township provides 15% of the local government share of the following year's budget.
The library also receives income from donations, fines and fees, sales, and interest - 10% of all library funds. In 2007, the library's total income was $1,757,174 and its expenditures were $1,728,450.
The library is a 501 c (3) charitable organization. Donations to the library are tax deductible.