Economic Reality And New Thinking Lac 2.12.09

Economic Realities Economic Realities andand

New ThinkingNew Thinking

February 12, 2009February 12, 2009

Brad FishBrad Fish

PA State FundingPA State Funding

• Expectations vs. RealitiesExpectations vs. Realities

Public Library FundingPublic Library Funding

• Total 08-09 Dept of Ed. = $9.7 Total 08-09 Dept of Ed. = $9.7 billionbillion

• Library funding is $75.8 million Library funding is $75.8 million

This is 0.8% of the Edu. spending.This is 0.8% of the Edu. spending.

Economic DownturnEconomic DownturnBegins Fall 2008Begins Fall 2008

1.1. Housing Market DropsHousing Market Drops

2.2. Unemployment IncreasesUnemployment Increases

3.3. Stock Market – major decreasesStock Market – major decreases

Increased UnemploymentIncreased Unemploymentand the Stock Market Fallsand the Stock Market Falls

•Unemployed family incomes fallUnemployed family incomes fall•State income tax revenues fallState income tax revenues fall•State unemployment, health costs increaseState unemployment, health costs increase•Employed families become $ defensiveEmployed families become $ defensive•Retail sales drop significantlyRetail sales drop significantly•All local and regional revenues also fall.All local and regional revenues also fall.

State Revenue ShortfallState Revenue Shortfall

RAD Revenue 2009RAD Revenue 2009

Close the Revenue GapClose the Revenue Gap

Expected Shortfall - $2.3 billionExpected Shortfall - $2.3 billion

2009-2010 Proposed Budget2009-2010 Proposed Budget

2009-2010 Proposed Budget2009-2010 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.

2009-2010 Proposed Budget2009-2010 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.

2009-2010 Library Budget2009-2010 Library Budget

Total PA Education SpendingTotal PA Education Spending

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Total Education(In Billions)

PA Public Library SpendingPA Public Library Spending

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Public Library(In Millions)

Library RealitiesLibrary Realities

• Recession means increased library useRecession means increased library use

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

Library RealitiesLibrary Realities

• Possible funding cuts this year – 2009 Possible funding cuts this year – 2009 RADRAD

• Expect significant cuts for 2010Expect significant cuts for 2010• State, regional and local funding fallsState, regional and local funding falls• Funding cuts could be 10 - 20%Funding cuts could be 10 - 20%

RAD Revenue 2009RAD Revenue 2009

2009-2010 Proposed Budget2009-2010 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.

Library OptionsLibrary Options

1)1) Become defensive – cut expensesBecome defensive – cut expenses

Library ExpensesLibrary Expenses

• Payroll and staff expensesPayroll and staff expenses• Operating costs: utilities, equip., maint,…Operating costs: utilities, equip., maint,…• Materials and collection expensesMaterials and collection expenses

Library OptionsLibrary Options

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

New ThinkingNew Thinking

•ACLA Libraries are economically ACLA Libraries are economically and legally a and legally a federatedfederated group of group of

independent libraries.independent libraries.

• We could begin to We could begin to operateoperate like an like an organized group of consolidated organized group of consolidated

libraries.libraries.

Were Not All the SameWere Not All the Same

• NotNot advocating all libraries should be advocating all libraries should be the same.the same.

• Create unique and exciting differencesCreate unique and exciting differences• Focus on your community and their Focus on your community and their

specialized needsspecialized needs

Four Focus AreasFour Focus Areas

• Customer service and related issues Customer service and related issues • Library operationsLibrary operations• Personnel and staffing issuesPersonnel and staffing issues• Create new revenue sourcesCreate new revenue sources

Customer IssuesCustomer Issues• Encourage customer use of all libraries:Encourage customer use of all libraries:• Fines, materials policies, holds, …Fines, materials policies, holds, …• Better understanding of collections.Better understanding of collections.

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

• Referral for unique programmingReferral for unique programming• We can’t afford complete duplication of We can’t afford complete duplication of

all standard services and collections.all standard services and collections.

Operating and PersonnelOperating and Personnel

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

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

• Consider bundled technology savingsConsider bundled technology savings• Consider sharing or flexed employeesConsider sharing or flexed employees• Consider regional employee “experts”Consider regional employee “experts”• Rethink all job descriptionsRethink all job descriptions

New RevenueNew Revenue

• Review and improve existing sourcesReview and improve existing sources• Friends Group and other local supportFriends Group and other local support

• New Revenue New Revenue • Partnerships - with businesses and schoolsPartnerships - with businesses and schools• Library Foundations – Library, regional, ACLALibrary Foundations – Library, regional, ACLA• Shared grant writing opportunitiesShared grant writing opportunities

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

A Time of ChangeA Time of Change

• Changing customers: 24/7, mobile accessChanging customers: 24/7, mobile access• Technology is changing – Web 2.0Technology is changing – Web 2.0• Changing formats: print shifts to digitalChanging formats: print shifts to digital• New national leadership, new optimismNew national leadership, new optimism• Declining economy and falling revenuesDeclining economy and falling revenues• Increasing traffic and customer needsIncreasing traffic and customer needs

A Time A Time ForFor Change Change• It’s time It’s time forfor: :

• New thinking and new solutionsNew thinking and new solutions• Improved customer policiesImproved customer policies• Improved operating proceduresImproved operating procedures• A new structure and new rulesA new structure and new rules• New community and business partnersNew community and business partners• New revenue sourcesNew revenue sources• Renewed commitment for excellenceRenewed commitment for excellence

ACLA Libraries: Working Together For You!ACLA Libraries: Working Together For You! • Our Mission:Our Mission:

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