Budget Report 2006: Ripple Effects
Budgets grow modestly, but energy costs cloud the horizon
By Norman Oder -- Library Journal, 1/15/2006
Last year, we reported a “definite uptick in fiscal support” that was expected to continue. But that was before Hurricane Katrina and other factors sent energy costs skyrocketing. Those costs not only affect construction projects (see News, p. 20–21), but also ongoing operational costs, including utilities, employee travel, bookmobile service, staff service to various locations, courier service, and vendor bills, among others.
The energy squeeze has ripple effects. In past years, shrinking state budgets have in turn squeezed municipalities, and thus libraries. Last June, the National Association of State Budget Officers reported that “the revenue shortfalls facing states in recent years have subsided,” but also that the sunnier short-run forecasts were clouded by other “budgetary challenges.” The energy issue was not then highlighted, unlike the cost of health and retirement benefits—an ongoing issue for libraries.
Energy costs, however, are a good part of why budget growth, which has been steady over the past five years, has been slowing down. The projected change from FY2005 to FY2006 is only 3.3%, compared to 5% in the previous report. Also, the projected change in materials budgets is 2.3%, compared to 4.7% in last year's report. Still, per capita funding has nudged upwards, to a projected $37.26 in FY2006.
Of course, our report is dependent on the libraries that responded. For example, our sample reported a 3.4% increase in per capita circulation, to 8.69 in 2005. However, the libraries in last year's sample reported a similar increase, to 8.78 in 2004. Suffice it to say that per capita circulation nationally is likely just under 9.
Similarly, in last year's report, while last year libraries reported that 21% of library staff had MLS degrees and this year's sample reports 18%, the libraries this year said they had kept their professional/paraprofessional ratio steady rather than lost MLS librarians.
Computer challenges
In most libraries, the provision of public access computers is fundamental to their mission, a function shown to be crucial after hurricane evacuees found accommodation in new cities, especially in Louisiana and Texas. Libraries responded with alacrity, even providing computers in offsite locations like shelters. Still, service may lag, and the Bill & Melinda Gates Foundation last year announced a one-time grant program to help states and libraries replace or upgrade computers received through its 1997–2000 U.S. Library Program.
For the first time, we asked librarians about challenges in providing public access computing, and, it turns out, aging hardware is only part of the issue. Table 3 (p. 60) lists the challenges libraries reported on a weekly basis, but, for example, 50% of the total sample said they didn't have enough workstations on a daily basis. Our sample libraries reported spending approximately 2% of their budgets on hardware/telecom costs for public access computing.
Local trends
Most funding (79%) still comes from local taxes, with other levels of government contributing 12%, and donations and grants 3%. Among the libraries that reported fundraising, our sample had a slight slump, from an average of $301,000 to $250,000. Some libraries now embrace fundraising. For example, the Buffalo & Erie County PL, NY, which has absorbed a 24.5% reduction in county support for its FY06 operating budget, has established a new Development Office.
The libraries in this year's survey are directing more of their grant money and additional funding to children's services than books and materials, a slight change from last year. Some 47% reported spending grant money on children's services, followed by programming (43%), nondigital books/materials (41%), technology/automation (32%), adult services (25%), YA/teen services (24%), among others.
While rising property values can fuel budget growth, libraries in certain states face challenges. Ohio, long the flagship for library service, has seen state support threatened, prompting a turn to more local support. Libraries in some states face tax caps, while elsewhere, notably Colorado (see News, LJ 12/05, p. 16–17), voters have reacted against such caps.
Governance models remain diverse. Of our sample, 39% are governed by a municipality, 23% by a library district, 23% by a county, 4% by a regional consortium, and smaller percentages by other jurisdictions. Not surprisingly, some significant differences remain between large libraries and smaller ones. Smaller libraries (those serving populations under 25,000, and especially those serving fewer than 10,000) offer fewer hours and have a smaller percentage of degreed librarians.
Large libraries are more likely to comply with the Children's Internet Protection Act (CIPA), since they are more likely to apply for the E-rate discounts that are linked to CIPA compliance. Still, the CIPA compliance figure, 60%, is virtually the same as last year's 59%. Just under two-thirds (65%) of all libraries filter some Internet terminals, regardless of CIPA.
Libraries face demographic changes. Some 65% of respondents are in growing jurisdictions, especially in the Southeast and the Pacific/Southwest regions. Of the sample, 43% said the population has changed by ethnicity, and 60% of that subset indicated an increase in Hispanic population. Of the sample, 24% said the population has changed by age, and 61% of that subset indicated that the population is aging.
LJ mailed 1,944 surveys to a random sample of U.S. public libraries in Septemtber 2005, with 321 libraries responding, for a response of 17%.
| Local progress reports
A fiscal snapshot of how public libraries expect to fare nationwide. Dollars represent projected budgets for FY06 or FY06/07 |
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SERVING FEWER THAN 10,000
Katahdin PL, ME
$6000, unchanged
In this rural town of about 1000 people, the library relies on a circuit rider from the State Library network for troubleshooting, which sometimes means delays in maintaining computer service. Per capita is $6.
Oscar Grady PL, WI
$253,677, up 1.5%
Despite rising energy costs, insurance costs, and contract fees, the library benefits from a “great” political climate. Per capita is $36.
Schoharie Free Library, NY
$65,000, up 8.3%
The library asks the public for small increases every three to five years. Meanwhile, a capital campaign has raised major sums over five years.
Guntersville PL, AL
$280,000, up .7%
State aid and the library Friends group contribute a good chunk of the materials budget. A building upgrade has helped save on energy costs. Per capita is $35.
SERVING 10,000–24,999
Driftwood PL, OR
$677,124, up 5%
Increased fuel costs threaten tourism and city revenues. Fiscal concerns have caused the library to plan a more modest remodeling project. Per capita is $54.
Exeter Community Library, PA
$361,200, up 24.2%
Despite budget growth of 75% over five years, the library still has a relatively low per capita of $16. Rising energy costs will affect a planned new facility.
Cherry Valley Public Library District, IL
$700,000, down 15.6%
Despite relatively healthy per capita funding of $41, the library has seen a building bond expire—the cause of the seemingly dramatic drop in budget—and needs a new ballot issue for operating expenses—a tough challenge.
Oldsmar PL, FL
$671,000, up 2.1%
With a solid per capita of $48 and a growing community, the library has managed to save and budget funds for a $3.2 million facility to open in mid-2007.
Ionia Community Library, MI
$574,595, down 2.6%
The library in May lost votes for both a bond issue and an operations budget, just a week after the largest private employer in town declared bankruptcy and the city raised water and sewer rates by 11%. Per capita is $27.
SERVING 25,000-49,999
Brookings PL, SD
$752,318, up 2.5%
Energy costs, particularly for heating and cooling, weigh on the budget. Aging computers are slow. Per capita is $28.
Garfield County Public Library System, CO
$1.95M, up 9.6%
The library has growing revenue for operating expenditures but no capital savings, as five of six branches need expansion. Per capita: $38.
Milford Town Library, MA
$955,050, up 1.5%
Rising energy costs led to an increase in the budget allocation, the first since 2001. In October, the Town Meeting voted $1.45 million for a renovation of the existing space. Per capita is $33.
Auglaize County Public Library District, OH
$1.24M, unchanged
The library relies on the state budget for 93% of its funding, and the income tax cut passed by the legislature threatens state support. Per capita is $29.
SERVING 50,000–99,999
Oak Lawn PL, IL
$4.36M, up 3.8%
With per capita near $79, the library has invested in wireless access to add computer capacity—an addition of 20 simultaneous users on top of the 40 computer stations.
Delray Beach PL, FL
$1.82M, up 26.4%
Per capita is above $28, and the library has been enjoying large increases in property values and tax revenues—but the real estate boom is expected to top off.
Ozark Regional Library, MO
$839,048, up 4.2%
The outlook still looks challenging, with rising energy costs coupled with cuts in local assessed valuations and decreases in state funding. Per capita approaches $14.
Hamden PL, CT
$1.85M, up 11.6%
While the library seeks new positions funded to fuel the hoped-for increase cited above, it also may have to pay back wages from a union contract in binding arbitration. Per capita is $32.
SERVING 100,000–249,999
Yolo County Library, CA
$3.64M, down 4.7%
The library balanced its FY04-05 budget without drawing on reserves for the first time in six years, and the materials budget is still growing. Per capita is $27.
Northeast Regional Library, MS
$879,699, up .2%
With a per capita of only $9, the library must calculate the cost of branch visits from headquarters staff, as well as rising postage costs.
Calcasieu Parish PL, Lake Charles, LA
$6.18M, down .5%
A slight budget dip is hardly the worst news in Louisiana, where this library lost one of 13 branches after Hurricane Rita—and neighbors had it worse. Per capita is $32.
Wichita Falls PL, TX
$1.6M, up 4.6%
Because local school library programs have been cut and the city hasn't increased the library's staffing budget, the library has reallocated staff to serve children. Per capita is $15.
Kitsap Regional Library, WA
$10.4M, up 11%
Though the budget is rising, thanks to increasing property values, next year the library will have to ask the voters for a lid lift. Per capita is $43.
SERVING 250,000-499,999
Shreve Memorial Library, Shreveport, LA
$9.82M, up 14.6%
The library, riding property tax millages that have been renewed since 2013, was able to serve many evacuees from Hurricanes Rita and Katrina. Per capita is $43.
Greenville County Library System, SC
$11.53M, down .3%
The library has seen rising energy costs not just in utilities but in fuel surcharges from vendors supplying HVAC maintenance and landscaping. Per capita is $23.
Seminole County PL, FL
$5.72M, down .5%
In November, the county board approved an increase in the mileage reimbursement rate, but not a corresponding budget increase, so to save money the library is trying to consolidate trips and staff site visits. Per capita is $14.
Chester County Library, PA
$8.85M, up 9%
A healthy housing market helps fuel rising property tax receipts, but the cost of employee health care may be a strain. Per capita is $20.
SERVING 500,000-999,999
Milwaukee PL, WI
$25.76M, up 13.6%
Despite a decreasing materials budget over the past five years, the library in FY06 will see a significant boost in materials. Per capita is $43.
Indianapolis-Marion County PL, IN
$35.88M, down 7.7%
The library has reallocated spending to meet patron demand for materials, but city-county cuts mean decreased spending on personnel, programming, and more. Per capita is $35.
DeKalb County PL, GA
$14.6M, up 3.1%
The good news came on November 8, when local voters approved $54.6 million for 13 library projects. Per capita is $21.
Cuyahoga County Library, OH
$66.16M, down 3.4%
With 55% coming from local taxes and 37% from other sources, the library—with a sturdy $105 per capita—still feels the state squeeze.
Tulsa City-County Library, OK
$23.45M, up 3%
Increasing property values helps fuel budget growth, but energy costs mean the library looks carefully at spending. Per capita is $40.
SERVING 1,000,000 OR MORE
Orange County Library System, FL
$33.08M, up 6.2%
Even though the budget has increased, the library is trying to keep pace with personnel costs, as the materials budget is static. Per capita is $33.
San Bernardino PL, CA
$13.93M, up 2.1%
The materials budget has finally grown, thanks to increased property values and county decisions to support two new joint-use libraries and two enlarged branches. Per capita is $11.50.
Las Vegas-Clark County PL, NV
$65.41M, up 6%
Robust growth continues, but the library is on the lookout for a possible property tax limit initiative. Per capita is over $50.
Chicago PL, IL
$101.73M, up 8.4%
The library's materials budget has increased in the past five years, and the library has also received a $11 million commitment over two years for a new ILS and associated automation projects. Per capita is $35.
Carnegie Library of Pittsburgh, PA
$21.86M, up 1.8%
The library's small budget increase comes with fast-rising utility costs and health insurance premiums. Per capita is about $16. |
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| Author Information |
| Norman Oder is Editor, News, LJ |
