Aneliya Kochneva, Cohort II SUNY at Buffalo, Spring 2013

Complex County Public Library (CCPL)

Dating back to 1962, the CCPL consist of Main Branch(MB), Regional Branch ( RB) and two municipal branches ( MP1 and MP2) . Serving population of 58,914 people. MB- Own 2 story building, outdoor storage building, 15,500 sq.f not for public service. Population: 17,642 people. RB- Renting ( 2 year lease), commercial area(mall), large parking lot. Population: 8,542 people. MP1- own building, jointly used with Health Department. Population: 23,615 people. MP2- own building, joint use with public elementary school. Population: 9,115 people.

Current Budget- $2,666,691.93

Current Funding Levels
1400000 1200000 1000000

800000
600000 400000 200000 0

in dollar amount

The Problem

The CCPL is facing 18% budget reduction in 2013-14

Now What?
There are difficult times ahead of the CCPL system. The impact of 18% budget reduction in the amount of $480,004.55, could be potentially disastrous. Therefore, we have to find a way to follow our strategic plan and deliver the best service and materials to patrons who want it and need it. However, we cannot pretend there is an easy solution. Sacrifices will have to be made and everyone, patrons and staff alike will be affected by them. We have to strive to minimize the negative impact of this reduction the best way that we can.

Overall Impact of 18% Reduction

Collection, materials, resources and propertyoutdated Extended processing times and delays

Employee motivation and retention issues

Decrease in Service quality

Patron and community support withdrawal due to dissatisfaction

Our Options
To impose the 18% budget reduction we propose 3 separate options: Plan A- a short-term aggressive plan to offset the negative impact of the reduction immediately. Plan B- a long-term moderate plan to offset the negative impact of the reduction immediately. Plan C- a long-term combination plan that involves aggressive and moderate actions.

Plan A - Description
Plan A is based on closing RB- it serves the lowest number population and it is expensive to maintain. Poor management was exercised when it was open in the first place, considering the budget for 2011-2012 (i.e renovation, purchase of a lot of of new equipment, barely used, while MP1 is struggling, leasing space in an expensive commercial area, hiring unreasonable amount of employees for community and library size, etc.). Materials, equipment and people will be transferred to other branches that need the help. Sunday hours will be kept, no additional salary cuts will be made. The collection will be affected, but materials from RB will be dispersed between the different branches. Two of the 6 employees left will go to MB, 3 in MP1 and 1 in MP2. The space will be sublet (5% increase).

Plan A- in numbers
Action Rent Lib Materials -24% Clerical saries ( 8) Amount in $ 102000 100438 84576 % of budget 3.82% Closing Regional Branch 3.77% Closing one of 4 branches. Also all materials from closed branch could be accommodated in the 3 branches left. Explanation 3.17% 8 of 14 people on clerical position will be laid off. Accounts like purchased services, collection agency fees, professional fees, temp contract labor, computer database management, maintenance agreements, rent/lease , conference, 1.97% postage and publicity, employee vacancy ads, equipment/furniture repair can be downsized. 1.56% 1 of 1 person on professional position will be laid off ( manager, 1 year with the system) 1.44% Benefits of all 9 of 15 employees that will be laid off. Includes retirement, health insurance, Medicare, workers compensation and memberships.

Services -25% Professional salaries (1) Employee benefits ( insurance etc) (9) Capital Outlay MB80% Total 300 RB

52423

41643 38322 18189 12028

0.68% The resources needed will be relocated from Regional Branch. 0.45% Closing Regional Branch This will be off set by the 6 available employees from RB, who will be transferred to MB, and MP1.

Extra hours

10564

0.40%

Other Objects - 50%

7704

0.29% This is one of the accounts that allows flexibility. Unfortunately , very few employees will be able to take advantage of this account, it is necessary sacrifice. The Library has 2 year lease contract and it will sublet the building in this desirable commercial area with 5% revenue.

Tuition reimbursment Sublet fees 5% Total

7017 5100 480004

0.26% 0.19% 18.00%

Plan A- in detail
Advantages Disadvantages Least number non A lot of money were spent professional and professional on opening RB branch in positions eliminated, the first place, that will be Sunday hours will stay. a loss. Sublet fees back in the 8 non-professional and 1 budget professional employee Positive effect on MB, MP1 will be without a job. and MP2 ( new equipment The community that RB etc.) was serving will have to No pay cuts use some of the other 6 of the RB employees will branches or the outreach be positioned in the rest of services.

Plan B - Description
In this plan the largest burden of the 18% cuts will go to the collection development and services, and that will have unfortunate consequences. A lot of non-professional people will be laid off as well plus one professional ( PR in MB), as I was focusing on cutting whole positions, not giving pay cuts, which historically shows degradation of morale and demotivation of the whole staff. As part of this plan, some of the available space in RB will be sublet as well (large parking lot in a commercial area has a lot of potential, depending on the lease contract) There will be working schedule adjustment- no Sunday or extra hours, no overtime. This will be extremely difficult on all 4 libraries to pull off. All capital outlay will be cut, which will greatly affect the already unfortunate situation of MP1for example.

Plan B- in numbers
Action Lib Materials ( all) -25% Clerical salaries ( 9) Services ( all) -30% ( collection agency fees) Employee benefits ( insurance etc.) (10) Professional salaries ( 1) Capital Outlay All Supplies (all)-25% Sublet space in RB ($1250 a month) Extra hours Sunday Hours Other Objects - 60% Tuition reimbursment Collection agency fees Employee recognition program Overtime Total Amount in $ 128091 95148 % of budget Explanation 4.80% Unfortunately, the library collection will take a large piece of the cuts. 3.57% 9 non-professional positions will be cut. Accounts like purchased services, professional fees, temp contract labor, computer database management, maintenance agreements, rent/lease , conference, postage and publicity, employee 2.59% vacancy ads, equipment/furniture repair can be downsized. Benefits of all 10 employees that will be laid off. Includes retirement, health insurance, 1.60% Medicare, workers compensation and memberships. 1.56% 1 of 1 person on professional position will be laid off ( PR person from MB)

68970

42580 41642 26782 17095 15000 10564 9933 9245 8591 4026 1296 1041 480004

1.00% This will be a heavy burden on all of the branches, to compensate for lib. collection. 0.64% Steps have to be taken to cut back on office, copier, computer and processing supplies. 0.56% The RB building has available space that could be rented., it is in desirable area. 0.40% The libraries will have to cut back all extra hours, reflecting on a new schedule. 0.37% The libraries will be closed on Sunday. This automatically will adjust 9 of the 10 position cuts 0.35% This is one of the accounts that allows flexibility. 0.32% There will be no tuition reimbursement program available. 0.15% This has been completely liquidated, it is subtracted from services before 30% cuts as well. 0.05% There will be $138 left. Not much, but something. 0.04% Overtime will be cut entirely. 18.00%

Plan B- in detail
Advantages All 4 branches will remain open. The parking lot of RB can be used to bring money in the budget. The remaining employees will keep their benefits There will be no pay cuts. Disadvantages The libraries will be understaffed. The library schedule will be adjusted ( no Sunday or extra hours, no overtime) No tuition reimbursement. 25% of the collection development money will be cut. That is a large number. 30% of the services money will be cut as well. 10 employees will be laid off AND MORE.

Plan C - Description
The main burden of this plan falls on cutting employment positions ( 12 clerical, 1 professional and outsourcing 2 professional positions). There will be heavy cuts in services, and that will affect the quality of services provided imminently. The whole capital outlay account will be cut, which will have devastating consequences especially for MP1. Sunday hours, extra hours and overtime will be cut as well. The collection of library materials will take only 15% cut, which is lower than the precious options, supplies will be cut with 25% as well. The result will be severely understaffed libraries with demotivated employees this will be the most difficult plan to put into action that will affect the library service a lot more than the previous two options.

Plan C- in numbers
Action Clerical salaries ( 12) Lib Materials ( all) -15% Employee benefits ( insurance etc.) (15)

Amount in % of budget $
137436 64456 63870

Reason

5.15% This plan is with the highest number of non-professional staff members laid off. 2.42% This option focuses on less cuts on library materials. 2.40% Benefits of 13 employees that will be laid off, and 2 employees with outsourced jobs. Includes retirement, health insurance, Medicare, workers compensation and memberships

Services ( all) -30%

45980

Accounts like purchased services, collection agency fees, professional fees, temp contract 1.72% labor, computer database management, maintenance agreements, rent/lease , conference, postage and publicity, employee vacancy ads, equipment/furniture repair can be downsized. 1.56% 1 of 1 person on professional position will be laid off ( PR person from MB) 1.56% 1.00% 2 of 2 staff members who will have their jobs outsourced- Bookkeeper and Network Systems Manager. This will be a heavy burden on all of the branches, to compensate for less cuts in lib. collection.

Professional salaries ( 1) Outsorce professional jobs (2)- 50% Capital Outlay All Supplies (all)-25% Extra hours Sunday Hours Other Objects - 60% Tuition reimbursment Employee recognition program Overtime Total

41642 41642 26782 17095 10857 9933 9245 8591 1434 1041 480004

0.64% Steps have to be taken to cut back on office, copier, computer and processing supplies 0.41% The libraries will have to cut back all extra hours, reflecting in a new schedule 0.37%

The libraries will be closed on Sunday. This automatically will compensate 9 of the 13 nonprofessional position cuts

0.35% This is one account that allows flexibility 0.32% There will be no tuition reimbursment program available. 0.05% There will be no funds in this account 0.04% Overtime will be cut entirely. 18.00%

Plan C- in detail
Advantages Disadvantages All 4 branches will The highest numbers of remain open. positions will be eliminated Collection development 15, 3 of which are cuts will be only 15%. professional. The remaining employees Services will be cut 30%. will keep their benefits. No money in Capital Outlay There will be no pay cuts. account. No Sunday& extra hours or overtime. No tuition reimbursement or employee recognition program AND MORE.

Revenue Resource Options

Rental Income ( Both MB and RB have available space not used by the library) Creating new fees- for special database access, renting equipment and premises, programming etc. Increasing existing fees- raising late fees, ILL penalty fee, computer use etc. Organizing fundraisers- by the FL or the library itself, it can be with or without the involvement of local businesses. Corporate funding or partnership- reach out and create relationships with local businesses.

Revenue Resource Options- Contd

Volunteers- this can help offset the effects of cutting employment positions. If properly trained, 22 volunteers

can help substitute 8-10 non-professional employees and 2 pages. Tax Increase- community consists of young, working families with children, undeveloped area available, good conditions for raising taxes.

Fundraisers- a good opportunity to rise awareness within the community Paid programming ( camps) for children- the librarys goals are to serve the needs of children, the community is young and developing. That is an excellent opportunity to raise money and provide community service at the same time.

Resource Options in detail

Estimate Activities s in $ Rental Business, 5,000 Explore lease contract of income professional 200,000 RB and options in MB for organizations (if per year renting out or subletting building is used), parts of the properties. community (if parking lot) Creating Community 20Explore opportunities to new fees 30,000 charge for special database per year use, renting conference rooms etc. Increasing Community 10Increase taxes for existing fees 15,000 circulations, program per year attendance public computer Options Source

Resource Options in detail - Contd II

Estimate Activities s in $ Corporate Local 25 000 - Through support seeking funding/ businesses 75,000 activities, like providing partnership per year opportunities for the local businesses ( BBQ in RB for example) for advertisement, job fairs, employee training etc. Paid Communit 100,000- Organize Summer ( or other) programming y, local 250,000 camps, workshops, reach out to (or camps) businesses volunteers. for children Volunteers Communit 130,000 y per year Reach out to community, raise awareness, especially high school children, organize Options Source

Resource Options in detail - Contd

Options Source Estimates in $ Activities Organize fundraisers to raise the community awareness of the librarys difficult situation. Fundraisers Community, 100,000local 150,000 businesses, per year organizations

Tax Community, increase 2% local business Local government

75, 000100,000 ( of more, depends on the current tax rate)

Reach out to local government and lobby for Business tax collection increase and property tax increase. File appropriate paperwork.

Disclaimer*
*All data used in this assignment is fictitious. Therefore, the arguments and solutions are based on assumptions if data in regards to related problems or questions was not provided. The proposed plans are for exercise and demonstration purposes only. In reality a combination of all of the revenue resources as well as budget reduction options will be used and that will reflect in different outcome.

References

City of Madison (2013) Capital Budget Capital Improvement Program. Course Readings LIS 518 Spring 2013.

Loessner, G. (1999). Estimating Local Financial Support for Public

Libraries: A Tool to Facilitate Benchmarking of Best Practices Among Counties in the States. Public Productivity and Management Review.

23(1), 24-39

Miami-Dade County Public Library (2012) FY 2012-13 Proposed Budgets and Multi-Year Capital Plan. Course Readings LIS 518

Spring 2013.

Robbins, J. & Zweizig, D. (1992) Keeping the books. Public Library Financial Practices. Highsmith Press, Fort Atkinson, WI pp. 373-403

References Contd

White, L. (2013) Complex County Public Library. Assignment 5 additional documents packet.

White, L. (2013) Complex County Public Library Budget. Assignment 5 additional documents packet.
White, L.(2013) Complex County Public Library Strategic Plan: 20012014. Assignment 5 additional documents packet. White, L. (2013) Complex County Public Library: Vision, Mission, & Goals. Assignment 5 additional documents packet. White, L. (2013) Consensus value estimate sheet for CCPL services and outputs. Assignment 5 additional documents packet. White, L. (2013) Performance data. Assignment 5 additional documents packet.

Acknowledgements
All images used in this presentation unless otherwise specified are acquired through Wikimedia Commons website (http://commons.wikimedia.org/wiki/Category:Images)