The rundown state of local libraries has caused the board to initiate a shake-up in the way funding is delivered.

Under the plan, the seven councils of the Central Highlands region would provide a total of $800,000, specially to fund increasing library collections by 2013.

But even if the $800,000 is provided, the region would still have only 80 per cent of the state's average collection.

Hepburn Shire's representative on the library board, Cameron Ward councillor Tim Hayes, said the government's failure to keep up with new technologies in 21st century libraries was partly to blame, with the advent of CDs and e-books adding extra costs to modern library collections.

But he said keeping the public engaged with libraries was critical.

"Fifty-five per cent of the population are members of the library in this shire," he said.

"No other service attracts that percentage.

"Libraries are relevant to communities but they can be more relevant I believe."

He said it would be a gradual level of improvement for the libraries, which had been underfunded for many years.

"The reality is over the past number of years the library has been underfunded, understocked and understaffed," he said.

"Compared to the state average, we rank very low in our book collection."

Under the new proposal, council would increase its core funding to libraries by 15 per cent next year, to provide for an increase in opening hours, more programs and more book stock.

Council currently provides $360,000 per annum to the libraries.

To meet targets included in the new proposal, it would increase its funding next year to $413,000.

Cr Hayes said the proposal was part of an overall review of libraries in the central highlands.

The board is also looking at how the range of library services can become more relevant to ratepayers - and more integrated with council services.

"The council provides a range of home-care programs. Why couldn't the home-care staff deliver books for their clients," he said.