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To Budget or to Budge It
 

To Budget or to Budge It

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    To Budget or to Budge It To Budget or to Budge It Presentation Transcript

    • To Budget orto Budge It John DeBacher Public Library Administration Consultant Division for Libraries, Technology, and Community Learning
    • Questions Addressed What is this budget thing? Who prepares and presents it? Can the village cut our budget? How are we supposed to provide more without more funds?
    • Webinar Format Different Audience Different Presenter Interaction! Snacks (or lack thereof) Attire (informal or optional)
    • Budget basics Definition: A list of the costs (expenditures) for existing services and new programs, and a breakdown of the revenues that will pay for those services and programs. The format and type of budget is generally determined by the municipality. Capital requests (distinct from the Operating Budget) may be handled through a separate process The library budget may be included in the general fund of the municipality, or it may be in a separate library fund* *Exempt from the State’s Expenditure Restraint Program.
    • Why budget? Establishes a credible, measurable framework for library operations. Provides an opportunity to plan services & request necessary funding. Creates a way to track required revenues and reportable expenditures. Allows for public input (municipalities have requirements under s. 65.90). And…you have to!
    • Municipal Budgets65.90(1) Every municipality shallannually, prior to the determination of thesum to be financed in whole or in part bya general property tax, funds on hand orestimated revenues from any source,formulate a budget and hold publichearings thereon.
    • Municipal Budget FormatSuch budget shall list: Anticipated revenue and appropriations Prior year actual amounts Actual amounts for at least the first six months of current year Estimated revenues and expenditures for the balance of the current year Anticipated unexpended or unappropriated balances and surpluses s. 65.90(2)
    • Typical responsibilities for thelibrary budget process The mayor or village president establishes guidelines and goals for departments. The library board establishes service goals and priorities for the library. The library director recommends a budget to the board with the information to evaluate proposals and possible alternatives. The library board amends and approves the budget and forwards it to the municipality. (cont.)
    • Responsibilities for the librarybudget process (cont.) The municipality prepares a budget summary and notices a public hearing--it does not have to include the full library board’s requested amount. A public hearing is held, amendments considered, final budget approved, and tax levy set. If full library funding is not approved, the director makes adjustments, approved by the board. The library director administers the approved budget. All expenditures are approved by the board with subsequent payments made by the municipality.
    • A typical budget process February-March: the director reviews the annual report and the previous year’s data to ascertain trends, patterns, and changes. Spring: Library board reviews long-range plan library service goals in light of trends. Mid-year: Library director and board review expenditures and revenues to determine if current budget is on track. • Municipality begins budget process, establishing budget calendar and guidelines. • Director reviews budget guidelines and obtains direction from the board for budget preparation. Late summer: After discussion, director drafts a preliminary budget for the board. (continued)
    • A typical budget process (cont.) Late summer/early fall: Board reviews preliminary budget and approves or denies the requests. Director makes adjustments to the budget based on board input and submits a library budget request to the municipality. Budget is reviewed by the mayor, administrator, or finance committee who may request additional information from the director or board. Fall: Municipality holds a budget hearing, reviews budget, and may make amendments. Public may comment on programs or services. Depending on municipal appropriation, the director and board may need to adjust expenditures.
    • Budget formatconsiderationso Account codes: Your municipality may have accounting system in place they would like you to useo Structure your revenues and expenditures to facilitate completing the annual report.o See Administrative Essentials:http://dpi.wi.gov/pld/ae13.html
    • Expenditures to project: Wage or salary increases (contracts?) FICA rate (currently 0.765%) Retirement (WRS or other) Service & vendor contracts Automation system costs Rate increases for utilities Anticipated retirements, hiring Equipment replacement
    • Revenues to project: LSTA grants (Federal funds) County payments Contract payments (may be subject to other budgets of other jurisdictions) System grants (state aid) Fines, and copier receipts Room, equipment or AV rentals Donations and “other revenue”
    • Factors in Budgeting:Consider (with your board) Your library’s plan & goals Increases in use and patterns of use Changes in anticipated costs Economic conditions—reality checkDetermine How strictly you will adhere to municipal budget guidelines Are all departments subject to guidelines? How to defend against budget cuts or freezes
    • Defense Against the Dark Arts #1: Maintenance of effort (MOE) Funding from the librarys municipality for a given year may not be lower than the average funding for the previous three years [s. 43.15(4)(c)5] Capital funding should not be included County payments may not be included for city, village, town, or joint libraries For joint libraries, MOE is the total received from all municipalities MOE is required for system participation
    • Defense #2:Exemption from County TaxTo determine the exemption amount: Divide the amount of tax levied by the county for public library service in the prior year by the equalized valuation of property in that area of the county that was subject to the county property tax levy for public library services in the prior year. Multiply the amount by the equalized valuation of property in the municipality for the current year.To be exempt, libraries must comply with any established county standards under s. 43.11
    • DADA #3: Seeding theCloudsFunding generates funding Budget cuts create collateral damage Reduced hours, acquisitions make library less attractive Library provides stability, support in poor economy
    • County payments under Act 150  SB 269, signed April 1998, became law on July 1, 1998 as Act 150  The bill was introduced by the Joint Legislative Council and developed by the Special Committee on Public Libraries.  Requires county reimbursement for public library use by residents of municipalities without libraries, s. 43.12  Permits county plans for library service, s. 43.11  Remind your county that reimbursements to libraries are exempt from county levy limits
    • Adjacent county payments, Act 420  SB 272, known among libraries as the Library Reform Bill, became Act 420 and took effect on June 2, 2006.  Based on recommendations of State Superintendent Elizabeth Burmaster’s Task Force on Public Library Legislation and Funding.  Extends to adjacent counties the reimbursement requirement for public library use by residents of municipalities without libraries, s. 43.12.  Reimbursements must be deposited with the municipality (not with trust funds or donations), but only for use by the library.
    • County reimbursement By July 1 of each year, report to the county clerk the number of circulations made the previous year to “residents of the county who are not residents of a municipality that maintains a public library under s. 43.52 or 43.53,” as well as the total number of loans. Divide the total operational expenditures by total loans, then multiply by the eligible loans. Be sure to subtract Federal funds.
    • Example:To figure the 2011 payment$97,450 Total 2009 expenditures (minus LSTA money and capital funds)Divided by:38,540 Total circulations in 2009$2.53 Cost per circulationx 7532 Eligible county loans=$19,045 Full cost of eligible circsx .70 Minimum required$13,331.48 Payment due by March 2011 -Statute does not prevent the county from paying 100% or from paying additional funds for shared services, nor from providing its own additional funding for capital expenditures.
    • Budget Cuts May CutReimbursements!Collateral damage: Lower expenditures may mean lower reimbursements (cost per circ) Fewer new materials attracts fewer borrowers Shorter hours means fewer visitors
    • Option one: Reduce Costs  Reduce operating costs  Minimize or defer purchases  Fewer materials; older equipment  Cut staff  Higher % part-time staff  Freezes or furloughs  Reduce hours  Drop or reduce contracts  Lower overhead: greening
    • Option 2: Change Rearrange work flow; peak patron flow Evaluate operations, or get a operational critique Job swap for change of perspective Cross-training Self service, quick turnaround? Vendor shelf prep Eliminate redundant or unnecessary steps Examples: shelf list, order cards, double sorting, mending, binding, stamping, labeling…
    • Option 3: Weather theStorm Use reserves • Fund balance • Trust fund Raise emergency support Suspend or eliminate services More clerks or volunteers Lower standards: let things go
    • Option 4: Rally the Troops Know who your friends are—and use them!  Library Board, former members  Friends of the Library  Program families; home schoolers  Teachers, regular users Get the word out: promote Organize for more county funding Make them ashamed to cut you!
    • Best Option: Some of All Damage control—maintain funding yet address increased use Accept the inevitable but don’t accept that it’s permanent Make advocates of those you serve Garner more outside support Use reserves Streamline and reorganize
    • For more information contact: Your colleagues Your library system staff Wisconsin Public Library Development Web page at: http://www.dpi.wi.gov/pld/index.html John DeBacher, Public Library Administration Consultant, (608) 266- 7270 or john.debacher@dpi.wi.gov