The situation may not be worse than in the early 1990s, but public libraries are definitely hurting Public libraries are suffering budget cuts in most states nationwide, according to an informal LJ survey, with a significant segment—though not a majority—characterizing the strictures as worse than in the early 1990s, the last time libraries were hit hard. LJ contacted state library agencies and, in some cases, state library associations, for a snapshot of current budget pressures and library responses. Thirty states were able to provide responses: some were based on recent surveys while others were simply estimates. Local funding, often dependent on property taxes, accounts for the bulk of library support, and that fluctuates widely, depending on the jurisdiction. So why are so many libraries facing static or lowered budgets? (A static budget is in effect a cut, because of inflationary pressures on salaries and materials.) Blame state grants, a vital component—usually up to 10%—of local budgets. Because most state budgets have been shrinking, even libraries with consistent local funding feel a pinch. Still, the situation looks to improve (see 'A Brighter Future,' p. 54). While patrons may not yet be complaining, they should soon notice some clear impacts: fewer books, fewer hours, and fewer staff. Libraries face a dilemma about whether to make cuts dramatically obvious to the public. Common tactics are to cut both materials and hours, as well as less-obvious travel, supplies, or open positions. In fewer cases, staff have been laid off, and some buildings have closed briefly, but very few buildings have been shuttered. Respondents said libraries were more likely to cut materials. 'This is a 'silent killer,'' notes J.D. Waggoner, secretary of West Virginia's Library Commission. 'Too often John Q. believes if the lights are on and the door is open, everything must be fine. However, no new materials are being purchased, and library staff, already grossly underpaid in West Virginia, will see no increases in salary.' In Oklahoma, where half of the libraries face static budgets and the others face cuts, some are using state aid money for materials rather than technology. In Alabama, all libraries are facing cuts, and some 90% are starting with materials first, according to a survey by State Librarian Rebecca Mitchell. In New Mexico, half of those facing cuts (some 42% in an informal survey by the state library) are buying fewer materials; individual libraries have chosen to lease books or even buy from used bookstores. At the same time, libraries have been forced to scramble. In many cases, they are seeking new revenue, whether from fundraising, increased fines, or new levy elections.

Pressure from above

In Georgia, while local funding has remained constant, the state cuts have really hurt. State funding accounts for about 20% of total public library funding, but for some systems it can support as much as 60% of a library budget. State funding, which has never kept pace with inflation, was cut 5% in FY03, 2.5% in FY04, and may hit another 5% for FY05. The effect, according to State Librarian Lamar Veatch: cuts in materials, staffing, and maintenance/operations. Comparing the current situation to the early 1990s, Veatch points out that, since then, statewide databases and a single library automation system provide a backbone to library service. Still, the cuts are no less painful. The state library has prepared a map, listing cuts in 17 library systems, that presents a disturbing composite portrait: one has discontinued outreach to schools, another has cut materials purchases in half, two can't repair computers, and two have eliminated bookmobiles. Pennsylvania libraries have been waiting for months for the restoration of the 50% reduction in state aid to public libraries. At press time, a legislative budget compromise was imminent, but not all the $37.5 million lost was expected to be restored. The significant growth in state aid to public libraries between 1999 and 2002 led to major increases in hours open, materials expenditures, training, and staffing. 'The current [precompromise] reductions will take away most of the increases and resultant benefits,' notes Matt Kane of the Office of Commonwealth Libraries. The average loss to public libraries is 13% of operating income, but for some libraries state funding represents 30%. For 93% of libraries, the cuts will not take effect until this month; most libraries are expected to cut hours, and some have already done so. Ohio libraries have traditionally been richly supported, receiving 5.7% of the state's personal income tax revenue. That revenue has been declining and so has library funding, from $496.5 million in the year 2001 to $452.6 million in 2003. Lynda Murray of the Ohio Library Council predicts static funding for next year, which, on top of legislated cuts of $40 million over three years, means more pain for libraries. In the early 1990s, Ohio libraries lost only $10 million. South Carolina state aid to public libraries has been cut in half, from $2 per capita in 2000 to $1. However, the situation is more complex. The South Carolina State Library actually distributed a 13% increase from the last fiscal year, thanks to funds from the Education Lottery Act. Still, reports State Librarian Jim Johnson, some 90% of libraries in the state are experiencing cuts. In Colorado, reports State Librarian Nancy Bolt, the state's library community is seeking to design a single entity to replace the seven regional library service systems; funding for those systems dropped from $2.4 million (FY03) to $600,000 (FY04) and may be eliminated in the following year. The library community is now seeking legislative support for a new entity, supporting academic, public, school, and special libraries. Because conflicting amendments to the state constitution have limited tax revenue, the state library's budget has dropped from $8 million to $1.5 million. [see correction] In Hawaii, 'We have experienced inadequate budgets since the mid-90s,' reports State Librarian Jo Ann Schindler. After cutting materials, travel, training, and equipment, the Hawaii State Public Library System was hit with a second budget cut and a hiring freeze in the middle of FY03. Cutting hours and bookmobile service, Schindler said, was more a question of what was left to cut rather than a well-planned strategy.

Local forces

In some states, libraries are at the mercy of larger forces. Idaho has a 3% cap on budget increases. If a district is levying at its maximum rate, its budget is frozen unless assessed valuation increases. Most library budgets are static, says State Librarian Charles Bolles, noting that even modest increases in receipts are being absorbed by increased costs in risk/liability insurance. Indiana libraries are suffering cash flow problems because a reassessment has delayed receipt of property taxes. Since the state's property tax structure was not based on current market cost, a lawsuit forced the entire state to go through a reassessment. Many counties have not completed the reassessment yet, so as of last month, 2003 property tax bills had not been sent for about a third of 92 counties. Usually local government units gain tax revenues in June and December, but some libraries have received no tax monies at all. In the meantime, they have had to borrow from other available funds or from banks just to keep operating. Ultimately, said the state library's Martha Roblee, they will get the money. Even though two-thirds of libraries in the state of Washington have received budget increases, State Librarian Jan Walsh thinks the situation is worse than in the early 1990s, as statewide initiatives cap budget increases for cities and library districts. In California, according to an anecdotal survey by the California Library Association, the vast majority of public libraries are facing budget cuts or, at best, static budgets, though there are some bright spots, like San Diego. A few libraries report they have bonds for a new building but now worry they won't have the operating budget to open the facility properly. Complicating that is the uncertain situation in Sacramento, where new governor Arnold Schwarzenegger must negotiate with the legislature on emergency budget tactics. In North Dakota, some 75% of libraries are facing budget cuts because of lowered taxable valuations and population declines. Sometimes cuts are hardly uniform. In Nebraska, some 70% of public libraries face static budgets, with the rest split between increases and cuts. Still, one of the worst-off libraries is the largest, the Omaha Public Library, which may have to close a branch in the next fiscal year, according to Rod Wagner, director of the state library commission.

Better news

Sometimes those local forces are positive. 'Thanks to good management and steady revenue streams, the state of Wyoming does not have a budget crisis. With only a few exceptions, based on local circumstances, county library systems have healthy budgets and are not experiencing cuts,' says State Librarian Lesley Boughton. Nearly all the libraries in Rhode Island are receiving budget increases. In Louisiana, notes Rebecca Hamilton of the state library, library funding depends on property taxes in each parish (county), which are renewed every five or ten years. So libraries are insulated somewhat from other forces and have not suffered cuts.

Maintaining effort?

In Massachusetts, 65 of 335 applicants for state aid are not meeting the maintenance of effort (MOE) requirement—the average of the prior three fiscal years' municipal appropriations to the library plus 2.5%—and have applied for waivers. Typically, the Board of Library Commissioners has received one waiver request, but in 2002 it received nine. The board will review the waiver petitions at its meeting this month and vote next month. While the board is statutorily limited to ten waivers a year, budget language for FY04 will allow it to grant as many waivers as needed, and such language may recur next year. Dianne Carty of the board says, 'The allowable waivers will help libraries ease through this period of fiscal challenge. Public libraries and the State Aid program survived the last fiscal crisis, and I am confident we will pull through this one also.' In Tennessee, the MOE—which requires that neither budgets nor hours be cut—has nudged public library budgets up for the past 20 years. Last year, about a dozen libraries warned that they might not be able to make the MOE, but all but one have come into compliance. While local governments are struggling, 'our MOE agreement means that governments in fiscal distress cannot balance their budgets on the backs of our public libraries,' notes State Librarian Edwin Gleaves. In North Carolina, 13% of libraries did not meet MOE—constant funding—for FY03–04. If local funding is reduced, the state library examines whether the cut is commensurate with other departments or agencies funded by the county or city. If so, the library receives a lesser, prorated share of state aid. As in the previous year, the number of libraries not meeting MOE is well above the average. 'There are some who would like to see the MOE requirements changed, but for the most part I think libraries understand that it helps them to be able to say they'll lose state funding if local funding isn't kept up,' points out the state library's Jeanne Crisp.

What next?

Besides cutting services, libraries have been regrouping. A large number have looked to their Friends groups, grants, foundations, and other fundraising opportunities. In several states they've gone back to the voters for new levy elections; in Ohio, twice as many libraries went on the ballot in November compared with previous years. About half the libraries in Iowa faced cuts in the budget year that began July 1, 2003, says State Librarian Mary Wegner, and it should get worse. 'Many libraries are adding or increasing fees and/or fines,' she notes. The Salem Public Library, OR, now charges $1 to check out videos. Also in Oregon, one small library, the Fossil Public Library, lost its entire budget but has reopened a few days a week owing to volunteers. Another solution is to reconfigure funding. In Colorado, notes Bolt, 'Library districts are the only public libraries experiencing significant increases.' [see correction] In New York, which otherwise was unable to provide a statewide snapshot, 'Per capita support for public libraries that have converted to public library districts is, on average, double the per capita support of libraries that have not converted,' saysState Librarian Janet Welch.

Sending a message

As Pat Norris of the Illinois State Library puts it, libraries under pressure face a dilemma: 'Do you cover up the losses and carry on, or do you hit the public where it hurts and make the public also feel your pain?' Ohio's Murray notes, 'Initially libraries did try and make adjustments in nonpublic areas. Because of the extent of the funding cuts, however, most were forced to cut in more public areas of service.' That has worked, at least in Ohio: 'Those libraries that made cuts in more obvious places were more successful when they went on the ballot.' 'Cutting something visible seems to work best though that causes much acrimony with the political powers,' notes State Librarian Sara Jones in Nevada. Adds Irene Padilla, Maryland's assistant state superintendent for libraries, 'Delaying building projects gets people's attention.' Observes a spokesperson for the Michigan Library Association, 'Historically, most libraries will cut 'nonvisible' services and support before they cut visible, popular services. The tone has changed, and more libraries are going for visible service cuts, partly because they have already cut a number of times.' [see correction] Of course, local tactics differ. Still, notes Norris, 'With our current economic situation in Illinois, more and more public libraries no longer have a choice. The budget impact is so severe that they are forced to cut staff, hours, materials, and service!' [Correction: In the print edition of this story, the quotes attributed to the Keith Curry Lance should have been attributed to Nancy Bolt. In addition, this online version updates the print account: the Colorado regional service system structure will not depend on fees; the library community is now seeking legislative funds. In the print edition of this story, the quote attributed to Terri Assaf should have been attributed to a spokesperson for the Michigan Library Association. Assaf forwarded the response.]

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Lynn Blumenstein is Senior Editor, Library Hotline Norman Oder is Senior News Editor, LJ. Ann Kim, Assistant to the Editor, helped with research