Budget Cutting - Follow Up

On July 24, I posted about a survey that my boss, Kitty Pope - the Executive Director here at the Alliance Library System, was running, looking at the various ways that libraries were looking to cut budgets to meet funding shortfalls.

The results are in - here's a link to the article that Kitty wrote summarizing the survey answers.

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You may have noticed that I haven't posted for a couple of weeks, with my last post being August 11. Well, August 12 was the day that the Illinois State Library notified us of our funding level for the current year. Needless to say, I've been busy working with the other department directors here at ALS in going through our previously approved budget with a fine tooth comb.

Since our board has not yet met to discuss the recommended cuts, I'm not going to share those here. What I can share, however, are some general thoughts as you go through a budget process - whether you're crafting an annual budget or you're digging around trying to revise a budget due to funding cutbacks:

• Understand your funding sources. The more diverse they are, the less chance there is that any one cut or reduction will have a major impact.
• Understand the requirements, if any, that your funding sources place on you. If you're restricted by a donor or grantor to using their money to purchase books, then make sure that's how you budget and spend those dollars.
• Understand your mission and your "customer" - often times, budgets or programs carry on year after year with no realization that the budget item or program no longer meets the organization's mission or meets your customers' needs.

In other words, make sure your budget covers all of the "have to do" items before you start considering the "want to do" items!

For example, when going through our budget the past couple of weeks, we had three criteria from the Illinois State Library (for specific programs) and placed an additional criteria on ourselves (to try and make sure any cuts we made had little or no direct impact on our members).

Budgeting is not a science, it is not an art. It is a combination of the two. With good planning, documentation and good understanding by your boards, you should be able to come up with a budget that meets the needs of your customers while remaining within the guidelines of your funding sources and your organization's mission.

Property Tax Cycle for Public Libraries in Illinois

The Consulting & Continuing Education Group here at the Alliance Library System has developed different tables and charts to help explain the various tax funds and the budget and property tax cycles that public libraries in Illinois face.

All of the downloadble tools created by the C&CE group can be found here.

For a list of ten different funds, the expenses you're allowed to spend from each, and the legal citation allowing these funds, click here.

For a list of seven property taxes which can be used to support the regular and ongoing financial needs of a public library, click here.

For a chart showing the steps in a public library's budget cycle, click here.

From personal experience, the budget cycle, funds and property taxes have been the most challenging and complex ideas to grasp as a trustee of a public library. At our last meeting, our library director handed out copies of the budget cycle chart and walked us through the process.

If you have questions on these processes, please contact a Library Development Consultant here at ALS. Contact information can be found here.