How is the Library Funded?
Until recently, the Public Library Fund (PLF) was funded with 1.97% of the total tax revenue received by the State of Ohio and divided among the 251 public libraries in Ohio. However, from mid-2011 until mid-2013, the PLF is funded at 95% of the monthly distributions made in August 2010 through July 2011. Increases in State revenue will not benefit the Library for these two years.
In 2011, the PLF provided 62.1% of all revenue received by our library. The Hamilton County property tax levy provided 32.4%.
2011 Revenue:
| Public Library Fund, State of Ohio | 62.1% |
| County Tax Levy | 32.4% |
| Fines & Fees | 3.1% |
| Contributions & Gifts | 0.8% |
| E-rate Telecommunication Discounts | 0.7% |
| Restricted Grants | 0.4% |
| Miscellaneous Income* | 0.3% |
| Earnings on Investments | 0.2% |
*Passport fees, supply sales, property rentals/sales, refunds, digital services.
What are the Library’s expenditures?
2011 Expenses:
| Salaries & Benefits | 63.9% |
| Library Materials | 15.0% |
| Purchased & Contracted Services | 14.5% |
| Capital Improvements | 3.1% |
| Supplies | 2.3% |
| Furniture & Equipment | 1.2% |
What is the Library’s funding outlook?
While the PLF remains our primary source of funding, the amount of revenue it provides continues to fall. State funding of public libraries will decrease in 2012 by 5.6%. In the past decade (2001-2011), it has decreased 28%. Over the same time span, the number of items borrowed from the Library has grown by over 27%.
A countywide property tax that Hamilton County residents strongly supported began providing additional revenue in 2010. In 2012, the third year of the levy, revenue is projected to decrease by over 9% as a result of property re-evaluations.
The Library continues to maintain strict control over expenses and, over the past 2 years, has held expenses to less than annual revenue, even as those revenues have decreased. This has generated a savings that will be used to supplement insufficient revenue. We maintained a hiring freeze through much of 2011 that resulted in a one-time savings. Additional long-term changes, which do not impact services but reduce operating costs by $1 million annually, include outsourcing custodial services ($500,000 a year), automating the sorting of library materials ($165,000), outsourcing more security services and switching vendors ($100,000), eliminating the position of Development Director ($100,000) and changing our Integrated Library System ($200,000). These changes buy us more time, but until State funding stops declining, adequate Library funding remains at risk.
As we see continued growth in usage during these challenging economic times, it is clear that our Public Library is more valuable and relevant to the children and families of Hamilton County than ever before. We are committed to continuing to provide excellent library services to all residents of Hamilton County but, with reduced funding, some difficult decisions may have to be made to continue to operate within our budget.