More than $5million in library funding was pulled last month, but Local Government Minister Jeanette Powell reversed the decision last Thursday, announcing $6.5million in additional spending over the next three years.

Melton libraries are now guaranteed to have funding restored for 2011-12 through a single up-front payment.

"The government will ensure library funding levels are sustained while we undertake a landmark review of library services and funding arrangements," Ms Powell said.

A bipartisan 'libraries ministerial advisory committee' will be re-established to review the role, services and funding of libraries. Councils will be sent a new agreed funding agreement covering 2011-12 and 2012-13.

Public Libraries Victoria Network executive officer Elisabeth Jackson said the reinstatement of cut funding was great news, but it failed to address the underlying problems. "The level of funding has declined over years in real terms and there is no guarantee the Liberals will address that issue.

"We need some sort of guarantee that funding will increase in a way that keeps pace with growing populations and increases in cost of living."

Municipal Association of Victoria president Bill McArthur said the decision reflected the outpouring of community passion for local libraries.

-Benjamin Millar, Andria Cozza