How is the Library funded?
Public libraries in Ohio are funded through the Public Library Fund (PLF), previously set in law at 2.22% of the tax collections included in the State’s General Revenue Fund but reduced in the recently enacted biennium budget to 1.97%. These collections are then distributed to the libraries through the county budget commission. Counties with multiple libraries must compete for a share of these funds. In Hamilton County our one library system for the entire county creates a financial and operational efficiency.
Up to 90% of the Library’s total budget comes from the collection of state tax revenues. However, since 2001 the State economy has faltered, resulting in a continued decline in our Library’s annual State funding. In 2009 the Library’s income from the State is estimated to be down by 28% since 2001! It has dropped 19% alone from 2008. The Library’s remaining revenues come from contributions, fines and fees, restricted grants, investment return, and other income. The Library receives no money from the City of Cincinnati or Hamilton County. There are no bonds, levies or property taxes that support our Library.
Major Budget Cuts
Our Library has been a good steward of public funds. Since 2001 we have worked hard to contain costs, cutting hours by 10%, reducing staff by 20%, reducing or postponing raises, deferring building maintenance, cancelling capital projects, reorganizing the Main Library resulting in an annual $1 million operating savings. To increase revenue, the Library doubled fines and began charging for interlibrary loans. But, despite these efforts our expenses continue to increase.
Excellent Financial Stewardship
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.
Funding Gap Widening
In 2000, the Library’s income from the State was $53 million. In 2009, it is estimated to be $39 million or about the same as 1994 funding. At the same time that our primary source of funding has dropped by over $14 million, the rate of inflation is 25% and operating expenses have risen 15%.
In 2007 and 2008, funding shortfalls were covered with prior year savings from reduced hours of operation, staffing reductions, and other savings and cuts. To continue operating with full services through 2009, we are using every available resource, including gift and capital funds. But these one-time resources will not be available to us in 2010. The 2010-2011 state budget bill signed into law on July 17 further reduces public library funding with an estimated loss of $8.4 million for our Library over the next 24 months.
All these cuts have come at a time when the Library is busier than ever before. Currently, the Library enjoys over 5.6 million visits annually and usage of the Library has increased by over 17% since 2008. Home of the busiest Main Library in the country, the Library provides services to children, seniors and low income workers. The Public Library is a community asset that our community relies on—both in good times and bad. We cannot afford to lose such a valuable asset that provides free services to the whole community.
By the end of this year we will either have secured additional funding or we will be forced to significantly cut our services and staff. At a time when our community needs us most we have inadequate funding to meet that demand. It is difficult to accept that many of these vital programs and services and branch libraries may need to be cut in 2010 unless we are able to secure additional funding.
