Library budget review by trustrees

Our local library district has a new library director, and we just went through our first budget cycle. The director followed the process used in earlier years -- she built a detailed line-item budget and presented it to the board in a special budget review meeting. We walked through the budget line by line, asking questions, and based on those questions and some updates the budget was revised. The trustees were provided the final budget during the regular monthly meeting and were expected to review the changes and to approve the budget. This year, there were some major changes but only on a few line items, and the trustees approved the budget in that meeting, although with objections about the process.

The library director should have been given some guidance as to what the board was looking for in a budget, and how it should have been presented to us. The guidance was not provided for philosophical reasons -- the board president believes the director needs to put together the budget that the library needs without being given any guidelines or goals, beyond knowing the changes in taxes that will be available. This certainly seems to be the tail wagging the dog if a board believes that fiscal responsibility is of utmost concern, as the pot will most always be spent.

Surprising was that no summary diagrams were provided. Granted, this was historic practice, but as the new director used her first budget as an opportunity to rename line items and remove some traditional items, this would have been quite useful. I ended up building my own graphics and presenting to the board, and I believe the way I presented set the stage well for the budget modifications and subsequent approval.

Here's what I will recommend to the director for future budgets:

I am primarily interested in summary budget comparisons to previous budgets and actuals. From this summary, which should be presented graphically as well as in spreadsheet, I should be able to see how large budget items compare and how the totals compare. As trustees we need to be able to say how much the budget changed each year, as well as the items that went into it that changed.

Secondly, I need to know that our budget funds our long-term plans as we expect. In this year's preliminary budget, we were surprised to uncover that our "savings" had dropped to zero while our budget had increased by roughly 3x inflation. This was discussed and changed to more appropriate numbers.

Third, I need to know that we are not increasing long-term liabilities with the budget. In our case, we were surprised with unforeseen unfunded pension issues. Normal funding of the pension is in the budget, as well as catch-up payments, but not enough to cover the new issues. The trustees will absolutely need to define how rapidly we meet these obligations over the next couple of years. Any other long-term liabilities need to be tracked and validated in the budget cycle.

Fourth, I believe a yearly budget is a good place to define investments and divestments in services we offer. Instead of just giving line items that may hide these new or ending programs, we should specify these at this time. If we do it during the budget, we can gauge the savings of divested services and ensure that shut-down costs are covered. And we can understand new programs and new ongoing costs that can be expected. This need to report these items will also set the expectation by the board that the library will be moving forward and not just providing status quo services. The board needs to know this kind of information as the public often asks how we are reducing costs or investing in the library.

These should be minor additions to the budget preparation cycle, hopefully reflecting work that is already being done but not shared.

The detailed line items are also of interest, but most of what I've seen in previous board meetings in going over these are that there are as many questions about small line items as large line items -- often more time is spent on small items! Think postage vs. payroll... I think this reflects the board member's need to provide recommendations while sticking with safer, low-cost budget items. The first step is admitting you have a problem, and I'll admit I've done this in the past. I'll make the effort to reduce the time I spend nit-picking when I see those other items!

The new library director's contact list

Our suburban library has a new library director starting soon. If I had a say, I would recommend that the following contacts are added to her email/telephone list at the top, in order that these folks be contacted first with a self introduction. Why? I think the role of our library director, beyond day to day operations, is to position the library to take advantage of opportunities made available to better our library, its patrons, and the district.

1. Contacts at local large companies. We have 2 Fortune 500 companies based in our small suburb. I would like to see the corporate giving person as well as the librarians for these companies on speed dial. I see the opportunity for collaboration to better the district with these folks.
2. Head of Chamber of Commerce
3. Heads of other local business and charitable groups, including Kiwanis and Rotary.
4. Mayor and village manager of our village.
5. School principals for all local public and private schools.
6. Library heads at local university and at local arboretum.
7. Library or administrative contacts at other local colleges and trade schools (there are more than 4).
8. County tax officials (always need to check on taxes)
9. Protective services - chief of police and fire chief
10. Contacts at largest vendors - architect, outside maintenance, janitorial, printer, ...
11. Local press - not so many left, but include Patch
12. Partner organization heads - Friends group and Foundation
13. Influential local groups - e.g. Womens Club
14. Directors of every neighboring library
15. Local TEDx organization leader, other local lecture organizations
16. Insurance contacts
17. Managers of local real estate management companies with available retail space
18. Hotel managers (space availability, program tie-ins, audience for programs)
19. Local visitors bureau
20. Local Realtors organization
21. Operators of local venues for our programs or joint programs (schools, churches, hotels, restaurants, ...)

Many of these people could be sources of funds for the library or for programs. Some can provide space for programs, or content or audience. I would like to think that the library director will be ready to find any opportunities that come up with these people and organizations. I would want to see relationships created with the people so that the library is considered when opportunities come up. I would like to have the library have the attitude of "Let's make a deal".