Budget Report 2005: Tipping Point
Budget trends have improved, with smaller gains for hours and materials
By Norman Oder -- Library Journal, 1/15/2005
After several years of budget sluggishness, libraries now report a definite uptick in fiscal support and one that's expected to continue healthily next year.
Overall library budgets are projected to grow over the next year, according to the 484 libraries responding to the LJ Budget Report 2005, regardless of library size, with an average rise of 5% (see table below). Materials budgets are expected to go up 4.7%, while salary budgets should rise 5.2%. The statistics are relatively consistent regardless of size of library. Libraries spend an average of 14% of their budgets on materials and 61% on personnel. While each situation is different, libraries overall appear to be reaping the ripple effects of better state budgets. Reported the National Council of State Legislatures in December, "Budget overruns are less severe than in recent years. And budget gaps are practically nonexistent." Still, the group warned that 22 states expect significant budget challenges for FY06.
Libraries are hardly losing pace with the public, since per capita circulation rose from 8.46 to 8.78 in FY04, an increase of 3.8%. Still, that does not necessarily translate into robust service increases. In fact, responding libraries reported that hours actually decreased 1% over the previous year. The mean number of open hours for a system's largest library was 59.
Moreover, statistics over five years suggest some divergences. As total budgets have gone up 25% from FY99 to FY04, salary budgets have risen 32% and materials budgets have risen 16%. Specifically, 63.4% of libraries reported increases in materials funding, while a not insubstantial 25.7% of libraries reported decreases. As for salary budgets, 87.6% reported increases, while only 7.1% reported decreases. Numerous libraries reported facing increasing nonsalary personnel costs, notably health insurance.
Some libraries, especially in growing communities with increasing property tax revenues, project a sunny future. However, several states have clouds on the horizon. In Ohio, home of substantial state support, libraries expect no increase, so they will rely more on local tax levies. In Pennsylvania, libraries have felt the sting of state library cuts. Facilities in California have been hurt--some hugely--by the ripple effect of state budget cuts to municipalities. In both Washington and Missouri, library funding increases are hampered by state tax caps.
Responding libraries projected their FY05 (or FY05/06) per capita funding at $34.40, an increase of 3.9% over the previous year, which in turn was an increase of 3.1% (see Table 2). Seventy-four percent reported an increase in per capita funding, while 14% reported a decrease and 13% said it would remain the same.
As for the source of funding, 79% comes from local taxes, 13% from other levels of government, and 9% from all other sources.
Respondents reported an overall .1% increase in staffing in the past year, with 21% of total staff holding an MLS or equivalent. The ratio of MLS to non-MLS staff is holding steady except at the largest libraries, where it is improving slightly.
About one-quarter of libraries (26%) have launched entrepreneurial activities to raise funds. Of those, 59% have opened bookstores and 37% have opened cafés. Libraries reported some decreases in fundraising, from $279,999 in 1999--when the economy was more flush--to $213,000 in 2004. Libraries devoted 54% of fundraising dollars to operating budgets and 26% to capital projects.
Any library visitor knows that public access computers are often crowded: indeed, libraries reported an overall increase in Internet usage of 24.7%, with 81% noting increases. Libraries reported an overall increase in use of remote access of 23.8%. Some 45% of respondents reported increases, while 43% said they don't measure such use.
As for the Children's Internet Protection Act (CIPA), which ties receipt of E-rate discounts to filtering the Internet, 59.5% of respondents said they complied. A slightly larger percentage (65%) said they filter at least some Internet terminals.
It was predicted that smaller libraries might not choose to comply with CIPA, given the limited savings; also, it is believed people in smaller, close-knit communities are less likely to flout rules of acceptable Internet usage. Indeed, only 44% of the smallest libraries (serving fewer than 10,000 people) filter any terminals, while more than three-quarters of libraries serving more than 100,000 people filter.
Of those responding, 62% apply for E-rate discounts. Some 85% of libraries serving more than 500,000 people apply for discounts.
| Population Served | Total Budget 2005 | Change in Total Budget | Materials Budget 2005 | Change in Budget 2005 | Salary Budget 2005 | Change in Salary budget |
| Total Sample | $6,401,000 | +5.0% | $898,000 | +4.7% | $3,936,000 | +5.2% |
| Under 10,000 | 192,000 | 4.5 | 33,000 | 2.5 | 123,000 | 4.9 |
| 10,000-24,999 | 636,000 | 2.2 | 85,000 | 1.5 | 369,000 | 3.7 |
| 25,000-49,999 | 1,451,000 | 4.2 | 179,000 | 3.5 | 901,000 | 4.3 |
| 50,000-99,999 | 2,323,000 | 4.2 | 300,000 | 2.5 | 1,432,000 | 4.5 |
| 100,000-499,999 | 8,132,000 | 4.9 | 1,155,000 | 6.1 | 4,917,000 | 4.5 |
| 500,000-999,999 | 24,866,000 | 6.9 | 3,686,000 | 6.5 | 15,840,000 | 5.0 |
| 1 million or more | 57,218,000 | 3.9 | 7,594,000 | 2.0 | 33,706,000 | 7.2 |
| SOURCE: LJ BUDGET SURVEY 2005 | ||||||
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