2009 Library Funding
The faltering state and national economy devastated Library funding in 2009. As a result of both falling tax collections and a legislated reduction in the percentage designated to the Public Library Fund (from 2.22% to 1.97%), Library income dropped significantly. Our Library received $39 million in state funding in 2009—almost $8.5 million less than in 2008. The Public Library Fund remains our primary source of funding —91.6% of all funding received in 2009. But other income fell as well, most notably donations and investment income. Despite a $2.2 million reduction in expenditures, overall income was $11.8 million short of what we needed to operate the Library system this year. To fill that gap, we used one-time gifts and funds previously designated for capital improvements including the St. Bernard and Reading projects.
Funding Outlook
The Ohio Department of Taxation estimates that funding will continue to drop in 2010; their estimate of $36.4 million represents a further annual reduction of over $2.6 million. Fortunately, in November, Hamilton County voters overwhelmingly approved a 1-mill 5-year property tax levy. Beginning in 2010, the projected $20 million annual income from this local levy will provide a new dependable source of revenue that may offset much of the declines in state revenue. This important revenue is critical in keeping our Library strong. However, until state tax revenue collections stop declining and begin to grow, stable and adequate Library funding remains at risk.
Library Usage
While struggling to keep the Library’s doors open at a time when our primary source of funding dropped $8.5 million dollars (18%) in one year, we were also seeing growing demand for Library services with circulation once again reaching an all time high at 16,372,499 an increase of nearly 5% over 2008. Demand for reference assistance remained strong with nearly 2 million reference questions asked in 2009. Program attendance was also up with 328,588 attending Library programs in 2009. The number of visits to the Library reached more than 6.1 million for an 8% annual increase. Since 2007, our Library has seen the number of items borrowed increase by 1,415,905, an increase of nearly 10%. The number of cardholders stands at more than 271,000, up 15% since 2008 and database use, the count of searches performed on databases purchased by the Library reached nearly 2 million an increase of almost 20%. Searches of the Library catalog inside the Library jumped 7% to just over 5 million while remote searches reached 32.6 million, an increase of 17.2%.
Excellent Financial Stewardship
With the Library’s primary source of funding dropping by nearly 30% since 2000 while demand for Library services grew more than 20%, the Library has made many changes in how it operates to become more efficient by continually reducing its expenses to keep primary services available. These cost savings measures implemented range from cutting a few dollars a month on phone bills to the $1 million a year realized with the reorganization of the Main Library. Since 2001 the Library has cut services and materials purchased, reduced staff by 20% and hours by 10%, and cancelled or postponed capital projects.
Each year, an independent audit is conducted on the Library’s financial statements, internal controls and compliance with government accounting standards. These audits are consistently good and the Library has received annual Certificates of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association. The Library’s financial reports (and the audit opinions on those reports) are available on the State Auditor’s website.
Since 2005, the first year it was awarded, the Library has received the Ohio Auditor’s Making Your Tax Dollars Count Award, annual recognition given to only about 5% of government entities in Ohio for excellence in financial reporting. This award demonstrates our Library’s commitment to careful spending, accurate fiscal recording, and efficiency.
