Governor s Proposal Slashes Library Funding

Transcription

1 March 2005 Governor s Proposal Slashes Library Funding Governor Taft has introduced his fiscal year (FY) biennium budget. It is anticipated that this legislation will have hearings before the House Finance Committee thru mid-march. The House will recess on March 18 and return on April 4. The House is expected to introduce their version of the budget bill when they return. The House will likely vote on the legislation by mid- April and send it to the Senate for hearings in front of the Senate Finance Committee. It is anticipated that the Senate will vote on the budget bill by mid-to-late May and send the bill to a Conference Committee. A final version of the budget is expected no later than June 30, The following information is provided to explain the proposed cuts and the impact they will have on public libraries. Library Funding Background: Library and Local Government Support Fund (LLGSF) frozen in the biennium budget (HB 94, passed in June 2001). OPLIN shifted from the General Revenue Fund (GRF) funding to LLGSF funding, reducing the LLGSF to public libraries by $6.5 million over the biennium. In 2001, Legislature passed HB 405, a budget corrections measure that required the LLGSF to be set at the freeze amount or the permanent formula, whichever is less. Income tax revenues continued their decline, and the LLGSF continued to shrink in 2002 and HB 40 is passed in May 2003, which permits the Governor to further cut the local government funds by $30 million. The LLGSF is reduced by $9.7 million. Actual distribution of the LLGSF: Year LLGSF 2001 $ $ $ $455.4 Between 2001 and 2004, public library funding has been reduced 8.3%, while state spending has continued to increase. There are 251 public library systems in Ohio. Approximately 75% of these libraries operate almost exclusively on LLGSF. Tax Reform Background: Governor Taft s proposal reduces the personal income tax by 21% across the board, and implements the cuts over a five-year period. Personal Income Tax estimates: Year Current Tax Taft Plan Structure 2006 $8,390 $8, $8,741 $8,120 continued page 2

2 Governor s Proposal continued Eliminates 75% of the total personal property tax base as it exists in Reduces the current sales tax rate from 6% to 5.5%, effective July 1, Taft Budget Proposal: Governor Taft s Budget Proposal will freeze the calendar year (CY) 2005 LLGSF at the CY 2004 funding level. Beginning January 2006, under Governor Taft s proposal, the LLGSF will be reduced by 5% for CY Under this proposal, funding for January 2007 through June 2007 will continue at the 5% reduction (not an additional reduction of 5%). Proposed LLGSF distributions: Year Taft Budget Proposal 2005 $ $ * $234.7 The other two local government funds, Local Government Revenue Assistance Fund (LGRAF) and the Local Government Fund (LGF) will also be reduced. Funding to counties and cities will be reduced by 20%, and funding to villages and townships will be reduced by 10%. Local Government Funds: There are three local government funds: LGF, LGRAF, and LLGSF. Money from LGF and LGRAF are used to fund general revenue expenses in counties, cities, townships, and villages. 2 The LGF and LGRAF are supported by a percentage (LGF 4.2% and LGRAF -.6%) of the personal income tax, sales and use tax, corporate franchise tax, public utility excise tax, and a varying percentage of the KWH tax. The LGRAF is distributed on a per capita basis and the LGF is distributed on a population and municipal property tax value basis. The Governor s proposal will cut counties and cities by 20% and townships and villages by 10%. How Can Trustees Help? Contact Your Legislators Trustees are the most influential supporters of public libraries. Take the time to call or write your state legislators and the Governor. OLC message on Public Library Funding: Public libraries have done our part during the past three years to help bail the state out of its budget crisis by enduring our own budget cuts in excess of 8%. Public libraries and the millions of patrons who use their services can accept a temporary freeze, only if the state commits to developing a reasonable, stable, and predictable mechanism to fund the libraries and local governments that provide essential services to all of Ohio s citizens. Talking / Writing Points: Libraries provide essential services for our communities. Public libraries have been off formula since Between 2001 and 2004, public libraries have taken an 8.3% reduction in funding. The Governor s proposal includes an additional 5% funding reduction. This is more than 13% reduction in funding since At the close of this next biennium budget, public libraries will be off formula for almost six years. If library funding is returned to its original formula, the personal income tax reduction proposal will impact public libraries in the next biennium. It is impossible to determine what that impact will be because it s difficult to reliably project income tax reviews that far into the future, but the Governor s own estimates are 21% reduction in personal income tax revenue. This means a 21% reduction in library funding. For those libraries that have passed local levies, the reduction in personal property tax base further erodes library funding. The Ohio Department of Taxation estimates that this will reduce property tax base by 75% (using 2005 as the base) by Review the OLC Web site The OLC has created a new section on the OLC Web site at to provide current information about the state budget negotiations and pending tax reform proposals. Visit this site regularly to keep informed. This section on the OLC Web site also provides a link where you can your legislators. continued page 3

3 Governor s Proposal continued Update Address with OLC The OLC provides information to library directors in a weekly e- mail, which is passed onto library trustees by the directors. However, there are times when legislative issues require immediate attention and action from library directors, staff, and trustees. Please provide your current address to the OLC to receive important legislative updates. You can update your information by calling the OLC at , by ing olc@olc.org, or by completing a form on the OLC Web site at Please note: If you have provided a current address to the OLC and are not receiving periodic updates, please make sure that sent by the OLC (olc.org) or by the OLC s Internet provider (list.ohionet.org, ohionet.org) are not being filtered by your home or business SPAM filter. Attend 2005 Trustee Dinners The 2005 Ohio Library Council Trustee Dinner programs will focus on the current state of library funding. This spring, the Ohio General Assembly will be debating one of the tightest state budgets in history. Rising costs and diminishing revenues from state income taxes are creating a perfect - and potentially devastating - storm that could significantly impact state-funded services, including the Library and Local Government Support Fund. This may also be an ideal time for libraries to look at other revenue sources to supplement 3 the programs necessary to meet the needs in their communities. At each dinner, OLC staff will present an overview of the budget proposals being debated in the Ohio Statehouse as well as the latest discussions regarding changes that could impact library services throughout the state. Trustees and library staff members will get an inside look at how they can influence the budget debate through advocacy efforts with their local legislators. Complementing the budget presentation will be an overview of fundraising campaigns and foundations, options that many libraries may want to consider to supplement their current revenue sources. A viable option for libraries of almost any size, these alternative funding programs can help bridge the gap between providing the basic library services and launching stellar programs in your community. Professionals from Hodge, Cramer and Associates will share their expertise and insight into how libraries can use these revenue sources to go from good to great. Registration - 6:45 pm Dinner - 7:00 pm Registration: $35.00 For more information and to register, go to: trustee Trustee Dinners Schedule March 22 Northeast Trustee Dinner, Ramada Inn, Kent March 30 Southeast Trustee Dinner, Holiday Inn, Zanesville April 7 Southwest Trustee Dinner, Dayton Marriott, Dayton April 14 North Trustee Dinner, Clarion Hotel & Conference Center, Independence April 21 Northwest Trustee Dinner, Toledo Hilton/Dana Conference Center, Toledo April 27 Central Chapter Trustee Dinner, Fawcett Center, Columbus Attend OLC Legislative Day The OLC's annual Legislative Day will be held Wednesday, April 27 at the Columbus Renaissance Hotel. The OLC will post updated information and online registration on the OLC Web site at Review OLC Videoconferences Director of Government and Legal Services, Lynda Murray, has given two presentations by videoconference that provide detailed information about proposals for the state biennium budget and tax reform. Those videoconferences have been videotaped and are available for viewing the following links through the Kent State University School of Information and Library Science Web page: February 16 Videoconference mediasite/viewer/?peid=f e2-b95a-2a9fc4a0303 March 4 Videoconference mediasite/viewer/?peid=b1b0e47 e-505f-4892-ab0e-6b7cc9bb2007 SAVE THE DATE 2005 Annual Conference and Exposition October 5-7 Columbus, OH

4 OLC To Launch Members Only Web Access The OLC will enhance membership value with the addition of a new feature to the OLC Web site, making some of the information on the site Members Only within the next few weeks. Information such as the Jobline, division resources, and government relations updates will only be accessible to users who are individual or institutional members of the OLC. How will members login? All OLC members will be provided with their member identification (ID) numbers and a general password by or U.S. mail. When OLC members click on the site to access a Members Only section, a login screen will appear. Members will enter their ID number and the general password provided by the OLC. Members will then be able to personalize their passcodes. What if members forget their IDs or passcodes? OLC members can contact the OLC at olc@olc.org or (614) and request the information at any time during OLC office hours (Monday Friday from 8:30 a.m. to 5 p.m.). With the development of this Members Only section on the Web site, the OLC will have the ability to offer even more resources online to its members including online dues payment. Watch your or mail for more information about the OLC s Members Only Web site and information about your ID and passcode. 4 OLC Pursues Research to Develop Models of Cooperation for Libraries At its meeting on January 21, the Ohio Library Council Board of Directors again discussed how best to address the issue of improving library services in Ohio through various opportunities for cooperative and collaborative efforts. The Board recognizes that studying these options and creating models for cooperation to help improve or evolve library services is an important part of staying responsive to our membership. Over the past several years, economic and political circumstances have caused some libraries and local government entities to rethink their structure, the services they deliver, the way they deliver those services, and needs of the people who seek those services. The OLC believes that this is an issue that deserves its attention and thoughtful consideration. In order to accomplish this, the OLC plans to embark on a research project that will focus on the merits of consolidation, decentralization, collaboration, and independence of library services. It is the OLC's goal to create a model (or several models) for libraries to examine when discussing their options for cooperation in a way that ensures success for both the libraries and the communities that they serve. The scope of the OLC's research will provide two products: Recommendations for successful strategies to initiate the consolidation of services, cooperation, and/or partnership among libraries. The OLC's experience indicates that the initial approach to these subjects has an almost immediate impact of success or failure. The research will focus on actual models of success throughout Ohio and the country as well as strategies to avoid pitfalls. Models of success that will include a review of consolidations, cooperatives, and/or partnerships that have been successful, and how they achieved that success. The Ohio public library community has a rich history of collaborative efforts including OPLIN, Inter- Library Loan, and KnowItNow 24x7. Other political subdivisions also have experience in joint school projects, 911 response districts, and mutual aid fire department response agreements, to name a few. The research will examine why these have worked, and how can these models be applied to other possibilities. The OLC believes this research should reach far beyond the world of libraries because its proposed scope could impact other political subdivisions and the services that they provide. The timeframe for the research project will depend on a variety of factors: securing appropriate funding; identifying an entity to conduct the research; and developing a framework for the study that will render constructive results and practical models for libraries to follow. Currently, the OLC is pursuing several avenues of funding for the study. The availability of either public or private funds will dictate when and to what extent the next steps of the research will be initiated. The cooperation and involvement of Ohio's public library continued page 5

5 Models of Cooperation continued community will be critical to the success of this project. Library trustees, directors, and staff members are encouraged to participate in the process and provide feedback - recognizing that the result will not be an edict for change but rather a catalyst for progress and improvement. Internet Filtering Proponent Has No Plans to Reintroduce Legislation Although the Ohio General Assembly failed to enact legislation last year to require filtering on public libraries publicly-funded Internet access, the sponsor of the original bill has no current plans to reintroduce the legislation. On December 15, the Ohio House of Representatives voted unanimously to NOT concur with the Senate version of House Bill 132, which included language that would require Internet filtering on public access computers and parental permission for juveniles to borrow video materials in Ohio s public libraries. The Internet filtering legislation originated in Senate Bill 144 in early 2004 but had been stalled in the House Juvenile and Family Law Committee for the past several months. During the final week of the 2004 session, the Ohio Senate included the legislation in a bill regulating public indecency, HB 132, and then adjourned for the year preventing the Ohio House from recommending amendments to the bill. Without the House s concurrence, the provisions in SB 144 did not become law during the last 5 session of the Ohio General Assembly. OLC Director of Government and Legal Services, Lynda Murray, met with Senator Steve Austria (R-Beavercreek), the legislator who originally introduced the Internet filtering bill, to discuss his plans for re-introducing the legislation. Sen. Austria said he believes that his legislatives efforts have resulted in more libraries taking steps to protect children from access to inappropriate material on the Internet, and does not plan to reintroduce the filtering legislation. PBS Documentary About Libraries to Air in April Pulitzer Prize winning author and historian David McCullough joins Larry Weber, creator of the world's largest public relations organization, Weber Shandwick Worldwide; Lev Gonick, Vice President for Information Technology Services at Case Western Reserve University; and many library users throughout Ohio express their views on how the public libraries are evolving to meet the changing demands of our communities in a new program about public libraries. "The Public Library of Tomorrow" presents a brief history of libraries, and quickly takes us to today's "digital divide," revealing the library at the center of the information superstructure. The program explores the rich legacy and the current relevance of our libraries, which are at risk as government budgets suffer tight squeezes and state and local leaders look toward the public library as a potential budgetcutting jackpot. The objective of the new Public Television investigation "The Public Library of Tomorrow," is to inform and provoke a deep level of discussion and debate about the future of public libraries in our nation. The program, funded by the Ohio Library Foundation and produced by Glazen Creative Studios under the direction of Ron Goldfarb, has been released to PBS stations across the state with support from the Cleveland PBS station WVIZ. The release of this program comes just before National Library Week (April 10-16, 2005) where communities across the country celebrate the contributions of public libraries with special programs and events. Libraries will be promoting the program through the patron newsletter, on the library's Web site, and on materials distributed at the library. Depending on the broadcast time and date, some libraries may be able to host viewing events at the library combined with other events. The Public Library of Tomorrow Broadcast Dates WPTD Dayton April 3, 5 p.m. WNEO/WEAO Youngstown/ Akron April 3, 6:30 p.m. WBGU Bowling Green April 1, 10:30 p.m. WGTE Toledo April 6, 10:30 p.m. WVIZ Cleveland April 6, 10:30 p.m. and April 10, 3:30 p.m. WCET Cincinnati April 7, 7:30 p.m. and April 10, 1:30 p.m. WOSU Columbus April 10, 11:30 a.m. WOUB Athens April 6, 8:30 p.m.

6 Ohio Library Council 2005 Awards & Honors: Nominations Accepted Until May 6 Do you know a librarian who stands out as a true leader in your community? Is there a support staff person at your library who has gone above and beyond to ensure your library s success? Has your library initiated a program that has broken new ground in library service? Do you know a citizen or local official who has made a significant contribution to enhancing library services throughout the state of Ohio? Ohio s libraries are successful because of the staff, trustees, Friends, and patrons who work so hard to ensure that every person in every Ohio community has access to information through books, journals, computers, and the Internet. The 2005 OLC Awards and Honors program is your opportunity to recognize extraordinary people and organizations in your library and community. Award winners will be recognized at the 2005 Annual Conference, October 5-7, at the Hyatt Regency Columbus. For more information or to complete a nomination form, visit the OLC Web site at Nominations will be accepted until May 6,