The New Wariness

Facing a recession and a post–September 11 economic shock, PLs plan for retrenchment but remain fiscally sound

By Norman Oder -- Library Journal, 1/15/2002

In post-September 11 America, it's safe to say that libraries remain equity investments (see last year's Budget Report, "The Library as Anchor," LJ 1/01, p. 59–61), and, indeed, library construction projects remain on track. But public libraries, like several other sectors of government, faced a double whammy in the last quarter of 2001: not only did a recession squeeze public funds, the terrorist attacks shifted priorities to public safety and cut further into available funds.

Total budgets (see table below) are up 3.9%, while salary and materials budgets are up 5.07% and 3.1%, respectively. That 3.9% figure is a decline from last year's increase of 6.5% and the previous year's figure of 7.5%.

Some of the 355 libraries responding to the LJ Budget Report 2002 reported solid budget increases, thanks to a robust local economy or a strong funding mechanism. But most librarians' comments indicate a widespread wariness about their institutions' financial future, with some bracing for further cuts in FY03.

That's not to say that burdens are equal. Especially vulnerable were libraries in New York City, which faced a 10% budget cut in the current fiscal year (FY02), and in states dependent on tourists' sales tax revenues, such as Florida. Even Ohio, a paragon of library support, froze funding this year. State libraries, though still comparatively well funded, now must pay for the Ohio Public Library Information Network (OPLIN), which was previously paid for out of the general fund.

Also, in a notable shift, libraries reported a substantial decrease in the amount of donations received in 2001, an average of $482,000 vs. $571,000 in the previous year. That can be attributed not only to a slower economy and stock market losses but also the substantial charitable focus on the victims of September 11. Some smaller libraries (serving populations under 100,000) actually increased their fundraising in 2001.

Per capita up slightly

Per capita funding continued its steady increase, projected at $34.90 for FY02, up more than $1 per capita from FY01's $33.68. Still, 71% of libraries projected an increase in per capita funding, while 9% projected no change.

Compared with budgets from five years ago, medium and larger systems (50,000 population and above) averaged increases of 40% or more, while the budgets of smaller libraries grew more slowly. Also over five years, the net increase for materials (39.5%) exceeded the increase for salaries (36.8%), with the largest libraries (serving one million or more) reporting the most growth in materials budgets. That trend is likely to reverse, as libraries faced with tightened budgets often are forced to adjust their materials budgets in lieu of layoffs.

Then again, of those libraries receiving grant monies in FY02, 46% said they would use those funds for books/materials. Smaller percentages will use grant monies for technology (44%), literacy (30%), and Internet/web (19%). Among the largest libraries (500,000 or more), 69% will use grant money for books.

Funding & technology

While state governments remain the largest source of grants, half the libraries reported receiving money from the Gates Learning Foundation, with an average grant of $88,000. Larger libraries (50,000 and above) were most likely to receive Gates funding. For almost two-thirds of those libraries, the funding will run out this year, while another quarter have already expended their funds. Well over half the libraries aim to replace the Gates monies by increasing their budgets; time will tell if they have the capacity to do so.

Internet-related expenses still represent a very small portion of a library's total budget, but that proportion has almost doubled—from 2.2% to 4.2%—since 1998. The cost is projected to go up modestly, to 5%, in FY02. The major Internet-related cost is access, especially for those libraries serving smaller populations, followed by staffing, new hardware, and upgrades/maintenance. Fewer than one in five libraries has had to cut spending to pay for technology; in those cases, nearly all (90%) have targeted the materials budget.

The E-rate remained a significant source of funding, as two-thirds of libraries said they had applied for telecomm discounts, a slight drop-off from previous years. Perhaps reflecting the burden of filling out the forms, larger libraries (100,000 and over) were most likely to apply for the E-rate.

Meanwhile, online use continues to grow, by 40.3%. Per capita circulation, however, rose only modestly, to an estimated 8.29 for FY01 from 8.06 in FY00.

Some 43% reported filtering Internet use, a jump from previous years (31% in 2001, 25% in 2000). Of those filtering the Internet, 96% filter all their children's terminals. About half of those filtering also filter adult terminals. Perhaps because of the cost of filtering, smaller libraries (under 25,000 population) were least likely to use filters. The average cost was $1,722 per library system, but smaller libraries (under 50,000) spent an average of $360 or less.

Some of that filtering may have been implemented in response to the Children's Internet Protection Act (CIPA), which ties the receipt of E-rate funds to filtering. However, the law has been challenged, and it's likely that the courts will resolve the issue this year before libraries must decide whether to install filters.

Projected Library Budgets for Fiscal Year 2002*

Population Served	Total Budget 2001	Total Budget 2002	Change of Total Budget	Materials Budget 2001	Materials Budget 2002	Change of Materials Budget	Salary Budget 2001	Salary Budget 2002	Change of Salary Budget
Total Sample (weighted)	$6,095,000	$6,333,000	3.90%	$838,000	$864,000	3.10%	$3,671,000	$3,857,000	5.07%
Under 10,000	197,000	206,000	4.57	33,000	32,000	-3.03	102,000	106,000	3.92
10,000 to 24,999	568,000	608,000	7.04	88,000	91,000	3.41	325,000	346,000	6.46
25,000 to 49,999	1,612,000	1,674,000	3.85	224,000	228,000	1.79	951,000	1,004,000	5.57
50,000 to 99,999	2,443,000	2,584,000	5.77	365,000	385,000	5.48	1,456,000	1,547,000	6.25
100,000 to 499,999	6,265,000	6,497,000	3.70	848,000	868,000	2.36	3,636,000	3,878,000	6.66
500,000 to 999,999	28,489,000	29,685,000	4.20	4,012,000	4,235,000	5.56	16,528,000	17,583,000	6.38
1 million or more	58,907,000	60,831,000	3.27	7,473,000	7,602,000	1.73	36,580,000	37,174,000	1.62
*LJ mailed out 2000 questionnaires to public libraries in October 2001, with 355 responding, for a response rate of 18%

Fundraising Dips Down

Population Served	Average Amount Raise in 1996	Average Amount Raise in 2000	Average Amount Raise in 2001
Total Sample	$384,000	$571,000	$482,000
Under 10,000	4,000	22,000	24,000
10,000 to 24,999	61,000	24,000	41,000
25,000 to 49,999	22,000	88,000*	58,000*
50,000 to 99,999	438,000	136,000	170,000
100,000 to 499,999	122,000	553,000	388,000
500,000 or more	2,009,000	2,402,000	1,776,000
*One library with anomalously high fundraising was eliminated from these averages

Author Information

Norman Oder is Senior Editor, News & Features, LJ

Local Progress Reports

Serving fewer than 10,000

Prairie du Chien Memorial Library, WI

($292,212, up 2.2%)

The library credits a supportive board and city council for steady funding. It will be budgeting and fundraising for a building addition in 2003.

Douglas Library, Hebron, CT

($318,000, up 4.3%)

Previously an association library, Douglas became a town library last July. School construction, however, may limit funding for its growth. The library's expansion in 2000 led to more funding for staff but not materials.

Silver Creek Library, NE

($8500, up 6.3%)

This tiny township library, serving a population of 435, only recently gained a computer. It's open 15 hours a week.

Sutton Public Library, WV

($32,262, up 7.9%)

Dependent on state funds for two-thirds of its budget, the library, which has raised only $700 in the past two years, has started a campaign to construct a new building this year.

Gay-Kimball Public Library, Troy, NH

($69,993, up 3%)

The library was renovated and expanded three years ago and since then has tried to "hold the line" to demonstrate fiscal responsibility. Per capita is $26, and trust funds support 12% of the budget.

Serving 10,000–24,999

McPherson Public Library, KS

($525,600, up 4.6%)

With a healthy per capita nearing $37, the library benefits from a city government and business community that recognize "the importance of a quality public library" both for citizens and to attract new business/workers.

Wead Library, Malone, NY

($386,952, up 5%)

This library, near the Canadian border, fears contraction in the post–September 11 economy. Its $18,427 Gates grant runs out this year, and it must scramble to replace that funding.

Spencer Public Library, IA

($381,771, up 6.4%)

The library relies mostly on local funding (95%) and expects the city's contribution to stay consistent. Per capita is nearly $33.

Fairview Heights Public Library, IL

($400,000, up 3.2%)

The library reports that post–September 11 repercussions may be serious, as 94% of its budget is from local funding, and it depends almost entirely on sales tax revenues. Per capita is $26.62.

Holbrook Public Library, MA

($345,474, up 2.1%)

Due to cuts in both state and local revenue, the library's materials budget is on hold, and "we won't see increases in our budget for two or more years."

Serving 25,000–49,999

Bozeman Public Library, MT

($1.1M, up 5.2%)

The library has been unable to keep up with the area's 40% growth in the past 20 years. It must raise $4 million for a new building, as the city's bonding capacity can only cover one-third of the cost.

Wallingford Public Library, CT

($1.9M, up 5.3%)

The library's modest increase represents a cut from its original request, a consequence of a "huge increase in medical benefits" for both the library and the city. The library has saved thousands of dollars in electronic/web-based services thanks to the state-funded Connecticut Digital Library.

Morley Library, Painesville, OH

($2.75M, up 5.4%)

Though state funding (69% of support) has been cut over a three-year period, the library reports that grants and local funding have increased. Voters in November approved an $11.5 million bond issue for a new, larger building. Per capita is $64.

Princeton Public Library, NJ

($2.83M, up 7%)

The library's budget has increased steadily; per capita is $93.53, up $16 in two years. A $9.8 million capital campaign over two years, which will finance an expansion, shows support for the library at an all-time high.

Brookings Public Library, SD

($711,512, up 1.1%)

On top of a static materials budget, the library faces possible cutbacks in hours or services during FY03. With 96.5% of funding coming from the city, the library (per capita $25) may put its long-range plans on hold.

Serving 50,000–99,999

Sandusky Library, OH

($3.4M, down 5.6%)

Like most Ohio libraries, this is well supported (per capita funding nears $70), but it will cope with a 15% cut in revenue (including a 5% state cut) by using funds carried over from FY01.

Williamsburg Regional Library, VA

($4.7M, up 6.8%)

After seeing a 145% increase over five years (to a per capita of $71), growth is expected to slow, as municipal funding is dependent on tourism and state aid is uncertain, but the library's major funding, based on property taxes, should be solid.

Columbia County Public Library, Lake City, FL

($1M, down 2.7%)

State budget cuts are expected to affect both aid to libraries and county budgets. New strains on counties have led to a local freeze on hiring, travel, and capital outlays. The library gets 56% of its budget from the county and 40% from the state.

Jackson/Madison County Library, Jackson, TN

($903,394, up .8%)

With a per capita under $10, and static budget appropriations, the forecast is "not positive" in this economically strained region. The materials budget has declined 7.35% over the last five years.

Altoona Area Public Library, PA

($1.04M, up 4%)

The area economy has "taken a huge hit" as industries have closed. Municipal revenue is down, and state aid—41% of support in the recently revamped state funding structure—is expected to level off. Per capita is under $17.

Serving 100,000–499,999

Omaha Public Library, NE

($9.76M, down 6%)

Cuts in tax-supported funding will lead to fewer hours and materials. Because "technology funding is difficult to retain in budget allocations," the library will begin leasing one-third of its computers this year.

Cumberland County Public Library & Information Center, Fayetteville, NC

($6.67M, unchanged)

The library's county funding (84% of total) is jeopardized by decreased sales tax revenue caused by the faltering economy and military relocations. Per capita is $22.

Pueblo City-County Library District, CO

($6.0M, up 8.1%)

Though the local economy has grown uncertain in this well-funded district (per capita $43.8), the library has managed to garner a $4 million gift for the new main library, which will open in 2003.

Chula Vista Public Library, CA

($5.5M, up 1.2%)

The city is prepared to maintain the status quo in funding, with no cuts, and the library will increase operating hours this year. It hopes to pay for half of a new, $12.6 million library with funds from the state's $350 million bond act passed in 2000.

Broome County Public Library, Binghamton, NY

($2.66M, up 5.6%)

While circulation is low (2.44 per capita), it has been boosted by a new central library. Still, library service is not a local priority, and state budget support is expected to drop in the wake of September 11.

Serving 500,000–999,999

DeKalb County Public Library, GA

($12.1M, up 3.4%)

A fiscal tightening this year is expected to be temporary, but long-term growth prospects are "considered good." Older workstations will be replaced in 2003 and 2004.

Milwaukee Public Library

($21.4M, up 4.4%)

The library's $368,667 Gates grant ran out in 2000, but the library expects to enter into a new agreement with the city and the library foundation to provide stable city funding and increased revenue from the foundation.

Tampa-Hillsborough County Public Library, FL

($36.3M, up 7.7%)

The state's massive funding shortfall will eventually cut into the library's 7.4% state funding share, but the local taxing district that funds library operations (per capita is $35) should remain strong.

Tucson-Pima Public Library, AZ

($18M, down 8.6%)

Though it won a $5.5 million bond issue in 2000, the library is preparing for a nearly 10% budget cut for FY02/03, as the downturn in tourism has led to cuts in local revenues. The immediate future "looks uncertain to bleak."

Seattle Public Library

($34.4M, up .9%)

Though the library has raised some $27 million for its capital campaign in the past two years, the recession and a citizen initiative have stalled its operating budget, leading to two planned week-long closures this year.

Serving 1,000,000 or more

Fairfax County Public Library, VA

($27.8M, up 1.1%)

Though the library's budget has steadily increased by 50% over the past five years, the forecast is "not promising," as county agencies have been asked to cut their budgets 5% in FY02.

San Diego Public Library

($32.8M, up 18.4%)

The library received a large increase in FY02 (to a per capita of $26), with a commitment to continue that increase for three years. However, the economic downturn may delay or eliminate future increases.

Houston Public Library, TX

($37.44M, up .9%)

The library, dependent totally on local funding, will not expend the current year's budget fully and expects a reduced budget next year. A $40 million bond issue passed in November.

Chicago Public Library

($90M, up 1%)

While 2002 will be a stable fiscal year, the library will continue to spend bond monies to build new branches. The library expects more money for personnel and materials in 2003.

Las Vegas–Clark County Library District, NV

($34.62M, up 8%)

In this fast-growing area, the library before September 11 anticipated that service demands would outpace revenue. The downturn in tourism should add to the burden. The total budget has grown only 5% in five years.