Economic Realities and New Thinking February 12, 2009 Brad Fish

PA State Funding Expectations vs. Realities

Expectations vs. Realities

Public Library Funding Total 08-09 Dept of Ed. = $9.7 billion Library funding is $75.8 million This is 0.8% of the Edu. spending.

Total 08-09 Dept of Ed. = $9.7 billion

Library funding is $75.8 million

This is 0.8% of the Edu. spending.

Economic Downturn Begins Fall 2008 Housing Market Drops Unemployment Increases Stock Market – major decreases

Housing Market Drops

Unemployment Increases

Stock Market – major decreases

Increased Unemployment and the Stock Market Falls Unemployed family incomes fall State income tax revenues fall State unemployment, health costs increase Employed families become $ defensive Retail sales drop significantly All local and regional revenues also fall.

Unemployed family incomes fall

State income tax revenues fall

State unemployment, health costs increase

Employed families become $ defensive

Retail sales drop significantly

All local and regional revenues also fall.

State Revenue Shortfall

RAD Revenue 2009

Close the Revenue Gap Expected Shortfall - $2.3 billion

2009-2010 Proposed Budget

2009-2010 Proposed Budget In light of the national recession and the forecast for continued economic contraction at the outset of 2009, base General Fund revenues are not expected to grow over the current fiscal year. This may be an unrealistic expectation.

In light of the national recession and the forecast for continued economic contraction at the outset of 2009, base General Fund revenues are not expected to grow over the current fiscal year.

This may be an unrealistic expectation.

2009-2010 Proposed Budget • The 2009-10 General Fund budget is $26.6 billion A decrease of $64.5 million Budget accounts for the use of anticipated federal fiscal relief funds of: $1.1 billion in 2008-09 $2.4 billion in 2009-10, which will offset state costs.

• The 2009-10 General Fund budget is $26.6 billion

A decrease of $64.5 million

Budget accounts for the use of anticipated federal fiscal relief funds of:

$1.1 billion in 2008-09

$2.4 billion in 2009-10, which will offset state costs.

2009-2010 Library Budget

Total PA Education Spending

PA Public Library Spending

Library Realities Recession means increased library use Job seekers, new careers launched, adult back to school, basic reference needs go up: medical, consumer, family issues and families are looking for low or no cost entertainment, and more…

Recession means increased library use

Job seekers, new careers launched, adult back to school, basic reference needs go up: medical, consumer, family issues and families are looking for low or no cost entertainment, and more…

Library Realities Possible funding cuts this year – 2009 RAD Expect significant cuts for 2010 State, regional and local funding falls Funding cuts could be 10 - 20%

Possible funding cuts this year – 2009 RAD

Expect significant cuts for 2010

State, regional and local funding falls

Funding cuts could be 10 - 20%

RAD Revenue 2009

2009-2010 Proposed Budget In light of the national recession and the forecast for continued economic contraction at the outset of 2009, base General Fund revenues are not expected to grow over the current fiscal year. Budget relies on $2.4 billion from federal gov’t to offset state costs.

In light of the national recession and the forecast for continued economic contraction at the outset of 2009, base General Fund revenues are not expected to grow over the current fiscal year.

Budget relies on $2.4 billion from federal gov’t to offset state costs.

Library Options 1) Become defensive – cut expenses

1) Become defensive – cut expenses

Library Expenses Payroll and staff expenses Operating costs: utilities, equip., maint,… Materials and collection expenses

Payroll and staff expenses

Operating costs: utilities, equip., maint,…

Materials and collection expenses

Library Options 2) Become proactive – Use “New Thinking”

2) Become proactive – Use “New Thinking”

New Thinking ACLA Libraries are economically and legally a federated group of independent libraries. We could begin to operate like an organized group of consolidated libraries.

ACLA Libraries are economically and legally a federated group of independent libraries.

We could begin to operate like an organized group of consolidated libraries.

Were Not All the Same Not advocating all libraries should be the same. Create unique and exciting differences Focus on your community and their specialized needs

Not advocating all libraries should be the same.

Create unique and exciting differences

Focus on your community and their specialized needs

Four Focus Areas Customer service and related issues Library operations Personnel and staffing issues Create new revenue sources

Customer service and related issues

Library operations

Personnel and staffing issues

Create new revenue sources

Customer Issues Encourage customer use of all libraries: Fines, materials policies, holds, … Better understanding of collections. Who has the best: Civil War, art, travel,… Referral for unique programming We can’t afford complete duplication of all standard services and collections.

Encourage customer use of all libraries:

Fines, materials policies, holds, …

Better understanding of collections.

Who has the best: Civil War, art, travel,…

Referral for unique programming

We can’t afford complete duplication of all standard services and collections.

Operating and Personnel Look for consortia type purchase opportunities: supplies, services, materials Consortium could be regional or needs based issues like: Tutor.com, etc… Consider bundled technology savings Consider sharing or flexed employees Consider regional employee “experts” Rethink all job descriptions

Look for consortia type purchase opportunities: supplies, services, materials

Consortium could be regional or needs based issues like: Tutor.com, etc…

Consider bundled technology savings

Consider sharing or flexed employees

Consider regional employee “experts”

Rethink all job descriptions

New Revenue Review and improve existing sources Friends Group and other local support New Revenue Partnerships - with businesses and schools Library Foundations – Library, regional, ACLA Shared grant writing opportunities Volunteers – can this be improved and used in new, more creative ways

Review and improve existing sources

Friends Group and other local support

New Revenue

Partnerships - with businesses and schools

Library Foundations – Library, regional, ACLA

Shared grant writing opportunities

Volunteers – can this be improved and used in new, more creative ways

A Time of Change Changing customers: 24/7, mobile access Technology is changing – Web 2.0 Changing formats: print shifts to digital New national leadership, new optimism Declining economy and falling revenues Increasing traffic and customer needs

Changing customers: 24/7, mobile access

Technology is changing – Web 2.0

Changing formats: print shifts to digital

New national leadership, new optimism

Declining economy and falling revenues

Increasing traffic and customer needs

A Time For Change It’s time for : New thinking and new solutions Improved customer policies Improved operating procedures A new structure and new rules New community and business partners New revenue sources Renewed commitment for excellence

It’s time for :

New thinking and new solutions

Improved customer policies

Improved operating procedures

A new structure and new rules

New community and business partners

New revenue sources

Renewed commitment for excellence

ACLA Libraries: Working Together For You! Our Mission: ACLA pursues, provides and promotes the highest quality public library service possible for all residents of Allegheny County through collaboration, cooperation and coordination.

ACLA Libraries: Working Together For You!

Our Mission: ACLA pursues, provides and promotes the highest quality public library service possible for all residents of Allegheny County through collaboration, cooperation and coordination.