Detroit PL Working on Aggressive Budget Reduction Plan

In anticipation of a projected $17 million budget deficit for FY11/12, which starts July 1, Detroit Public Library (DPL) is working on a budget reduction plan that will go into effect March 31. Particulars are still being worked out, DPL spokesperson Atiim Funchess told LJ, but "everything is on the table." DPL is facing the possibility of layoffs, branch closures, reduced hours, and furloughs.

Something "proactive and aggressive" has to be done, said Funchess, who explained that the budget shortfall is caused by the usual reasons-rising benefits costs and diminished property tax revenues. DPL's current annual budget is $50 million.

Local media cites potential 20% staff reduction, 10% salary cut]
The Detroit News reported that DPL could lay off up to 20 percent of its staff, or 83 FTE; DPL currently employs 416 staffers over 23 locations. Salaries potentially could be cut by ten percent, the newspaper reported.

Funchess wouldn't corroborate any information included in the story. He did confirm that DPL hasn't laid off any staff since 1984-85.

DPL has a "rainy day fund" that has been built up over years of budget surpluses. Funchess was unprepared to cite a number, as the amount fluctuates according to the City of Detroit's accounting cycle. It may be used partially to offset budget gaps, he said.

The News reported that union officials are questioning how finances have gotten dire so quickly, saying officials gave most union employees six percent raises last year.

"The union is totally baffled on how in such a hole we are all of the sudden," Todd Kelly, president of American Federation of State, County and Municipal Employees Local 1259, which represents 125 workers including clerks, janitors, and security staffers, told the News.