Tough Times for State Libraries as States Face Budget Crunch

Washington Gov. Gary Locke's proposal last December 20 to eliminate the Washington State Library to help make up for massive deficits was the most draconian scenario faced recently by any state library agency. The library ultimately survived, owing to a merger (details below), but other state libraries have faced less dramatic but ultimately more significant threats. Indeed, as an LJ survey of the 50 state library agencies shows, most have experienced or face budget cuts, with more than one-third of the reductions exceeding five percent.

Given the pressures on state budgets caused by the recession and, in some cases, the effects of September 11, many agencies were asked to cut their current budgets (FY02) or prepare for future reductions. In many cases, library agencies have not been singled out. In several cases, however, it seems that governors and legislators see libraries as less crucial than, say, education.

Asked Virginia State Librarian Nolan Yelich, "Has the library community progressed in articulating our position since the revenue shortfalls of the early Nineties when library funding was badly hit? If the answer is yes to being an essential service and yes to articulating our position, then why at the state level are we not more closely aligned to overall educational funding?"

Added Yelich, "In many states there is increasing evidence that positive and much needed increases in library funding are permanently lost, and we are no better off that we were a decade ago." Several agency heads are already predicting dire implications for service.

Yelich speaks from a painful position. For the current and upcoming fiscal year, the Library of Virginia has suffered cuts totaling 24%—a retreat from recent gains. The library has frozen hiring and spending, discontinued 53 subscriptions, cut conservation and preservation, and is seeking money to pay for migration to a new integrated library system.

The State Library of Idaho, in the wake of a 17% decrease for FY03, has lost all its capital outlay, which includes library materials and equipment, as well as half the support for a literacy program. "It looks as though we will be reducing and, in some cases, eliminating several collections and severely reducing services to state agencies," said Idaho State Librarian Charles Bolles.

Most state agencies were cut about 10%, and a few agencies experienced more reductions than the library, but those agencies also had raised funds from outside sources. Bolles said that, while the library hoped to recover the cuts over the next few years, it would move faster than previously to position itself "more in line with an electronic information environment."

The South Carolina State Library started the fiscal year with an 11.32% cut, then took a 4% hit in November. This led the state library to eliminate its materials budget and reduce state aid to county libraries. Since then, declining revenues portend another 2.5% cut this year; the House budget includes a 5.69% cut for the next fiscal year. In addition to leaving positions vacant, the library has drastically cut supplies, equipment, and travel.

State Librarian Jim Johnson, fearing the effects of that cumulative reduction, sees one positive note: legislators appear inclined to direct $1.5 million from a new education lottery toward public library technology aid, which would be a 15% boost for the state library.

The Tennessee State Library and Archives faces a 10% loss, leading to "serious cuts in acquisitions and equipment," said State Librarian Edwin Gleaves, and the loss of direct grants to the state's four metropolitan public libraries, among other projected cuts. Legislators are still wrestling with revenue enhancements, so the budget is not set.

California anticipates a 15% cut, though it's early in the legislative session.

The 50-branch Hawaii State Public Library System was asked by the governor to cut 2%, but the House increased that to at least 5%. It's possible that the system will return to pre-1995 funding levels, said State Librarian Virginia Lowell, and the library—which spends 86% of its budget on salaries—will have to reduce staff and thus close some branches.

The State Library of Ohio suffered a 6% cut in FY02, but taken together with reductions twice during FY01, the budget went from $7.98M to $7.08M. The cuts made by the library—bookmobile, branches, media center—have positioned it to absorb a scheduled 6% cut in FY03.

The Indiana State Library was cut 8.2% in FY02 and expects reductions of 5%–10% in the coming year. The Nebraska Library Commission, along with other agencies, was cut last November 4% for FY02 and 5% for FY03; the governor has proposed an additional 3% pruning for FY03. In Minnesota, all state agencies have had to make 10% cuts, and more are expected. The Mississippi Library Commission faces a cut of at least 8%, likely leading to reduced library hours.

The Oklahoma Department of Libraries took a 2% reduction in the current year but faces a cut in the next year of 5%–15%. The Maine State Library shared an across-the-board hit of 6% for the current budget, but "the good news" is that the projected 6% cut for FY03 has been reduced dramatically, thanks to the governor's commitment to technology. Rhode Island's General Assembly is considering a proposed 5.8% cut in library programs; given the state's fiscal straits, that figure may be increased.

The 2002 budget for the Library of Michigan included a 5.23% across-the-board reduction for every budget item, including state aid to libraries. However, grants to the Detroit and Grand Rapids libraries were cut in half. For FY03, the budget is expected to be static. Maryland took a 5% cut last fall, and the legislature may call for more. The parent agency that includes the Wisconsin libraries divisionfaces a cut of at least 5%. The State Library of Iowa anticipates a cut of at least 4% in FY03 on top of reductions of more than 5% this year. Kentucky took a 4% cut in FY02 and expects to lose 5% more next year—though publicity about the loss of bookmobile service led the attorney general to contribute $200,000 from a consumer case settlement.

After Washington Governor Locke proposed shutting down the state library as of October 1, 2002, to save the state $9 million, Washington State Librarian Nancy Zussy and the library commission fought back. They pointed out that not only would that make Washington the only state without a state library, it would likely cost the state $3 million in federal funds that go through the library.

The library then faced several scenarios. Though the governor's budget proposal and that of the House of Representatives would have eliminated the agency, the Senate would have levied just a 3% reduction. One House bill outlined a process for dismantling the library, with major collections transferred to the Secretary of State and branch staff to institutions—all without money to fund the change.

Zussy said the legislature faced a "multiple no-win situation," with a $1.6 billion deficit to fill and a public that neither wants new taxes nor cuts in favorite programs, i.e., nearly all. However, statewide concern about loss of the library put pressure on Locke and legislators. Ultimately, the chair of the library commission and a legislator agreed to support transferring the state library to the Office of the Secretary of State, thus maintaining library services.

There should be savings—perhaps 5%—thanks to merged support services. Secretary of State Sam Reed, a library enthusiast, may be a good steward: he had argued that "keeping our heritage alive" was both a privilege and a duty.

The Arkansas State Library was cut only about 4% in the first year of the two-year budget cycle, but the legislature last year helped balance its budget on the backs of public libraries, slashing 60% of state aid. In Montana, all agencies must prepare a 5% reduction plan for FY03—a requirement passed by the 2001 legislature, not a result of slower growth. In Georgia, state agencies also face a 5% reduction.

Library funding in Massachusetts was cut less than 3% in FY02, but state aid to public libraries was decreased by 7.4%, and the state faces a 10% shortfall for FY03. Library advocates hope that legislators remember what happened in 1990, when budget cuts led to the closing of ten libraries and the permanent closing of 25 branches, said Keith Fiels, director of the Massachusetts Board of Library Commissioners.

Arizona received a 4.5% cut for FY02, average for state agencies, with the picture unclear for FY03. Connecticut experienced some budget recisions—5% of the book budget—and expects them to continue in FY03, though funding for the digital library has been restored. South Dakota expects a 2% cut for FY03—less than the statewide average of 9%—but has had a static budget for five years. Alabama expects "very minor" cuts. Illinois is anticipating a cut. Vermont was cut 3% during FY02 and expects level funding for FY03. Delaware is expecting cuts up to 2%.

Kansas has had static budgets for the past two years, but the legislature is preparing for an across-the-board cut of 2%–4%. Colorado has experienced two cuts, then a restoration of the equivalent of those funds; now State Librarian Nancy Bolt anticipates more cuts before the legislative session concludes. Utah expects a 2% cut. New Hampshire trimmed 1% for FY02 and 2% for FY03. In a special session of the Oregon legislature, the state library only lost .5%, far less than several other agencies. Alaska and North Carolina expect cuts. Florida suffered a slight decrease at the end of last year and expects a continuation budget.

In cash-strapped West Virginia, where state support for libraries has always been critical, "staying even was a win," said J.D. Waggoner, deputy director of the West Virginia Library Commission. The State Library of Louisiana has managed to avoid reductions while other agencies have received major cuts. Nevada expects a flat budget in the next two-year budget cycle. New Jersey's budget is flat. North Dakota is not expecting cuts, as it is one of only four states, noted State Librarian Doris Ott, with revenue and spending on target. Wyoming's budget wasn't cut, but the state library couldn't gain requested increases for statewide database licensing.

The New York State Library has not faced a funding decrease, though—like other agencies in a state facing a $6.8 billion deficit over two years—it has lost staff owing to a hiring freeze. Moreover, the library has faced another threat. The budget put forth by Gov. George Pataki proposes eliminating the Office of Cultural Education (OCE)—which includes the State Library, State Museum, State Archives, and Public Broadcasting—from the State Education Department. OCE would be incorporated into a new public benefit corporation, the New York Institute for Cultural Education (NYICE).

NYICE would not include a state librarian, and the state library's Friends group has lobbied for a study rather than such a major change. NYICE operations would be funded not from general funds but through a quadrupling of the fees collected by county clerks, a shift opposed by the clerks. While previous gubernatorial efforts to move the OCE have failed, it was unclear at press time whether this one would succeed.

In Pennsylvania, where former Gov. Tom Ridge (LJ's 2001 Politician of the Year ) dramatically improved state library spending, cuts have been staved off, owing to a $1.1 billion budgetary reserve built during years of economic growth.

Overall state spending is projected to increase by only .6%, but the Pennsylvania State Library expects a 3% increase in its operating budget. Still, library program appropriations—including statewide support for libraries—are projected at level funding, rather than increasing as was hoped. The new budget will not be finalized until May or June.

The current two-year budget for Texas, set in 2001, has not seen interim cuts, as the state economy is growing modestly. In fact, reports State Librarian Peggy Rudd, the library received funding for a direct state aid program for public libraries for the first time.

While several libraries responding to LJ's query predicted cuts even though budgets had not been submitted or finalized, Missouri couldn't offer predictions, and New Mexico expects a cut of unspecified size. It's unlikely that public officials will suggest eliminating a state library, but as some states' experiences show, a library agency can suffer severe injury with much less publicity.