ALA Leaders: Organizational Cost-Cutting Has Paid Off
Despite anticipated $3 million shortfall, ALA has balanced budget, stable outlook
-- Library Journal, 10/30/2009
- Cost-cutting leads to balanced budget
- Membership, advertising stable
- Next two years will be difficult
In a letter to American Library Association (ALA) Council Members, Rod Hersberger, treasurer, and Keith Fiels, executive director, say that cost-cutting has paid off:
Last April, the Association was forced to take a number of extraordinary measures in light of the fiscal crisis that began last fall. Facing a projected revenue shortfall of nearly $3 million, we instituted a series of cost cutting measures that included spending cuts, a one week staff furlough, and the elimination of a number of positions at ALA.We are pleased to report that, based on preliminary year-end figures, these efforts were successful. Thanks to the cost cutting measures implemented in April, we were able to end the year with a balanced budget and small surplus despite a revenue shortfall that did ultimately hit $3 million. This outcome has allowed us to provide some one-time, partial compensation to furloughed staff, and to make a modest contribution to the Association’s reserve.
This year-end news is particularly welcome because all indications are that the next two years will be very difficult for libraries, our members and the Association. For 2010, we have already implemented additional spending reductions in anticipation of further revenue softness. With library budgets all over the country being cut and furloughs, hiring freezes and travel and materials budget reductions common occurrences, we anticipate a further decline in overall revenue before the situation for libraries and the Association stabilizes and ultimately rebounds.
Even more encouraging is that, despite the economy, we had record-breaking conference attendance in Chicago, and do expect to have very successful and well attended meetings and conferences in Boston and Washington, as well as successful AASL and PLA conferences this year. Our membership, while slightly down, is remarkably stable in an environment where many associations have seen dramatic drops. Advertising, which suffered most dramatically last year, has stabilized.
Most importantly, we believe that the Association has been able to maintain a strong focus on serving libraries and our members. Despite budget cuts, we have continued and will continue to move ahead on important initiatives such as ALA Connect and those related to increased advocacy for libraries The first and foremost goal will continue to be service to members, libraries and the public.
