1. To Budget or
to Budge It
John DeBacher
Public Library Administration
Consultant
Division for Libraries, Technology, and
Community Learning

2. Questions Addressed
 What is this budget thing?
 Who prepares and presents it?
 Can the village cut our budget?
 How are we supposed to provide
more without more funds?

3. Webinar Format
 Different Audience
 Different Presenter
 Interaction!
 Snacks (or lack thereof)
 Attire (informal or optional)

4. Budget basics
 Definition: A list of the costs
(expenditures) for existing services and
new programs, and a breakdown of the
revenues that will pay for those services
and programs.
 The format and type of budget is
generally determined by the municipality.
 Capital requests (distinct from the
Operating Budget) may be handled
through a separate process
 The library budget may be included in
the general fund of the municipality, or it
may be in a separate library fund*
*Exempt from the State’s Expenditure
Restraint Program.

5. Why budget?
 Establishes a credible, measurable
framework for library operations.
 Provides an opportunity to plan
services & request necessary funding.
 Creates a way to track required
revenues and reportable expenditures.
 Allows for public input (municipalities
have requirements under s. 65.90).
 And…you have to!

6. Municipal Budgets
65.90(1) Every municipality shall
annually, prior to the determination of the
sum to be financed in whole or in part by
a general property tax, funds on hand or
estimated revenues from any source,
formulate a budget and hold public
hearings thereon.

7. Municipal Budget Format
Such budget shall list:
 Anticipated revenue and appropriations
 Prior year actual amounts
 Actual amounts for at least the first six
months of current year
 Estimated revenues and expenditures
for the balance of the current year
 Anticipated unexpended or
unappropriated balances and
surpluses s. 65.90(2)

8. Typical responsibilities for the
library budget process
 The mayor or village president
establishes guidelines and goals for
departments.
 The library board establishes service
goals and priorities for the library.
 The library director recommends a
budget to the board with the information
to evaluate proposals and possible
alternatives.
 The library board amends and approves
the budget and forwards it to the
municipality. (cont.)

9. Responsibilities for the library
budget process (cont.)
 The municipality prepares a budget
summary and notices a public hearing--it
does not have to include the full library
board’s requested amount.
 A public hearing is held, amendments
considered, final budget approved, and tax
levy set.
 If full library funding is not approved, the
director makes adjustments, approved by
the board.
 The library director administers the
approved budget. All expenditures are
approved by the board with subsequent
payments made by the municipality.

10. A typical budget process
 February-March: the director reviews the
annual report and the previous year’s data
to ascertain trends, patterns, and changes.
 Spring: Library board reviews long-range
plan library service goals in light of trends.
 Mid-year: Library director and board review
expenditures and revenues to determine if
current budget is on track.
• Municipality begins budget process, establishing
budget calendar and guidelines.
• Director reviews budget guidelines and obtains
direction from the board for budget preparation.
 Late summer: After discussion, director
drafts a preliminary budget for the board.
(continued)

11. A typical budget process (cont.)
 Late summer/early fall: Board reviews preliminary
budget and approves or denies the requests.
 Director makes adjustments to the budget based on
board input and submits a library budget request to
the municipality.
 Budget is reviewed by the mayor, administrator, or
finance committee who may request additional
information from the director or board.
 Fall: Municipality holds a budget hearing, reviews
budget, and may make amendments. Public may
comment on programs or services.
 Depending on municipal appropriation, the director
and board may need to adjust expenditures.

12. Budget format
considerations
o Account codes: Your
municipality may have
accounting system in place
they would like you to use
o Structure your revenues and
expenditures to facilitate
completing the annual report.
o See Administrative Essentials:
http://dpi.wi.gov/pld/ae13.html

13. Expenditures to project:
 Wage or salary increases (contracts?)
 FICA rate (currently 0.765%)
 Retirement (WRS or other)
 Service & vendor contracts
 Automation system costs
 Rate increases for utilities
 Anticipated retirements, hiring
 Equipment replacement

14. Revenues to project:
 LSTA grants (Federal funds)
 County payments
 Contract payments (may be subject
to other budgets of other
jurisdictions)
 System grants (state aid)
 Fines, and copier receipts
 Room, equipment or AV rentals
 Donations and “other revenue”

15. Factors in Budgeting:
Consider (with your board)
 Your library’s plan & goals
 Increases in use and patterns of use
 Changes in anticipated costs
 Economic conditions—reality check
Determine
 How strictly you will adhere to municipal
budget guidelines
 Are all departments subject to guidelines?
 How to defend against budget cuts or
freezes

16. Defense Against the Dark Arts
#1: Maintenance of effort (MOE)
 Funding from the library's municipality
for a given year may not be lower than
the average funding for the previous
three years [s. 43.15(4)(c)5]
 Capital funding should not be included
 County payments may not be included
for city, village, town, or joint libraries
 For joint libraries, MOE is the total
received from all municipalities
 MOE is required for system
participation

17. Defense #2:
Exemption from County Tax
To determine the exemption amount:
 Divide the amount of tax levied by the county
for public library service in the prior year by the
equalized valuation of property in that area of
the county that was subject to the county
property tax levy for public library services in
the prior year.
 Multiply the amount by the equalized valuation
of property in the municipality for the current
year.
To be exempt, libraries must comply with any
established county standards under s. 43.11

18. DADA #3: Seeding the
Clouds
Funding generates funding
 Budget cuts create collateral
damage
 Reduced hours, acquisitions make
library less attractive
 Library provides stability, support
in poor economy

19. County payments under Act 150
 SB 269, signed April 1998, became law on July
1, 1998 as Act 150
 The bill was introduced by the Joint Legislative
Council and developed by the Special
Committee on Public Libraries.
 Requires county reimbursement for public
library use by residents of municipalities without
libraries, s. 43.12
 Permits county plans for library service, s. 43.11
 Remind your county that reimbursements to
libraries are exempt from county levy limits

20. Adjacent county payments, Act 420
 SB 272, known among libraries as the Library
Reform Bill, became Act 420 and took effect on
June 2, 2006.
 Based on recommendations of State
Superintendent Elizabeth Burmaster’s Task Force
on Public Library Legislation and Funding.
 Extends to adjacent counties the reimbursement
requirement for public library use by residents of
municipalities without libraries, s. 43.12.
 Reimbursements must be deposited with the
municipality (not with trust funds or donations), but
only for use by the library.

21. County reimbursement
 By July 1 of each year, report to the
county clerk the number of
circulations made the previous year
to “residents of the county who are
not residents of a municipality that
maintains a public library under s.
43.52 or 43.53,” as well as the total
number of loans.
 Divide the total operational
expenditures by total loans, then
multiply by the eligible loans.
 Be sure to subtract Federal funds.

22. Example:
To figure the 2011 payment
$97,450 Total 2009 expenditures (minus
LSTA money and capital funds)
Divided by:
38,540 Total circulations in 2009
$2.53 Cost per circulation
x 7532 Eligible county loans
=$19,045 Full cost of eligible circs
x .70 Minimum required
$13,331.48 Payment due by March 2011
-Statute does not prevent the county from paying 100%
or from paying additional funds for shared services, nor
from providing its own additional funding for capital
expenditures.

23. Budget Cuts May Cut
Reimbursements!
Collateral damage:
 Lower expenditures may mean
lower reimbursements (cost per
circ)
 Fewer new materials attracts fewer
borrowers
 Shorter hours means fewer visitors

24. Option one: Reduce Costs
 Reduce operating costs
 Minimize or defer purchases
 Fewer materials; older equipment
 Cut staff
 Higher % part-time staff
 Freezes or furloughs
 Reduce hours
 Drop or reduce contracts
 Lower overhead: greening

25. Option 2: Change
 Rearrange work flow; peak patron flow
 Evaluate operations, or get a operational
critique
 Job swap for change of perspective
 Cross-training
 Self service, quick turnaround?
 Vendor shelf prep
 Eliminate redundant or unnecessary steps
 Examples: shelf list, order cards, double
sorting, mending, binding, stamping,
labeling…

26. Option 3: Weather the
Storm
 Use reserves
• Fund balance
• Trust fund
 Raise emergency support
 Suspend or eliminate services
 More clerks or volunteers
 Lower standards: let things go

27. Option 4: Rally the Troops
 Know who your friends are—and
use them!
 Library Board, former members
 Friends of the Library
 Program families; home schoolers
 Teachers, regular users
 Get the word out: promote
 Organize for more county funding
 Make them ashamed to cut you!

28. Best Option: Some of All
 Damage control—maintain funding
yet address increased use
 Accept the inevitable but don’t
accept that it’s permanent
 Make advocates of those you
serve
 Garner more outside support
 Use reserves
 Streamline and reorganize

29. For more information contact:
 Your colleagues
 Your library system staff
 Wisconsin Public Library Development
Web page at:
http://www.dpi.wi.gov/pld/index.html
 John DeBacher, Public Library
Administration Consultant, (608) 266-
7270 or john.debacher@dpi.wi.gov