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In order to make sure that funded LSTA projects are those most likely to succeed and will further the goals established in the LSTA 5 Year Plan, the State Library developed a two tier review process. Once grants are received at the State Library they are checked for eligibility and that the application meets all the requirements stated in the Request For Proposal. Applications are then sent to Review Teams. The number of teams varies by the number of applications received each grant round.

Review Teams are comprised of four members. Each Team is chaired by a member of the LSTA Advisory Council. Should the library of an LSTA Advisory Council member have submitted an application in a particular grant round, that member will not be eligible to serve as a team chair. The additional team members include one representative from the school library community, the public library community, and the academic or special library community.

Team members are selected based on their knowledge of the LSTA program, previous grant–writing experience, and expertise in one of the areas of funding. Having broad–based representation on each Team assists with the review process as members can clarify issues or terminology which relates to their type of library.

Teams are regionally based. No proposal is reviewed within the region from which it was submitted. Readers do not read proposals from libraries with which they have a working relationship. Nor do readers or LSTA Advisory Council members review proposals which they consulted on or commented on a draft.

Team members score each proposal in their team using the score sheet found on WINSLO. Team members then meet to discuss the applications; strengths and weaknesses and areas of improvement. Proposals are recommended for funding, not recommended, recommended if funds are available and revise/resubmit.

Individual team scores are reviewed at a meeting of the Team Chairs. The Team Chairs discuss the merits of funding individual proposals, particularly those falling in the category of recommended if funds are available. Team Chairs make final recommendations which are taken to the State Library Board for funding approval.