The New Leader by the year 3000

Library Districts

• City or county library’s funding comes from local tax sources combinded into a “general fund.”
• Nineteen states have district legislation for libraries.
• Some libraries or library systems are a tax district with authority to raise a tax levy, strictly for libraries.
• State law regulates the level of taxing authority.
• A library with taxing authority is in a better position to have funding continuity than one that must seek an annual appropriation.
• The board member role in a taxing district is as critical as his/her role in other library funding situations.
• The library director will develop a draft budget.
  • Board members study the budget to ensure that it conforms to the goals and strategies developed in the strategic plan.
  • The budget may be refined; avoid micromanaging it.
  • The library board will have a role in formally authorizing the budget before sending to the city or the county assessor.
• The library board will receive tax proceeds once or twice a year, according to the state law.

Federations, Consortia, & Regional Libraries

• Public libraries may be part of or the head of a group of libraries that cooperate to provide certain services.
• Each library:
  • will have its own funding authority (city, county, district).
  • will pay an annual membership fee to a coordinating library to operate the desired services.
• The purpose of this organization is to offer services for less than it would cost the individual library to offer them.
• The economy of scale is at work here, just as it is in other library systems.
• A member has supervision and advocacy responsibilities toward the library and a role in negotiations with the coordinating library.
• Library boards hold the coordinating library board accountable for seeing that their libraries receive the services they are paying for.
• A board member of the coordinating library, has oversight over the budget.
  • This includes:
    • good faith negotiating with the member libraries.
    • a degree of political acuity to maintain good relations with the staff and boards of the member libraries whose good will determine their existence.

City & County Libraries

• Public libraries are considered local government services.
• An annual budget is developed and presented to the local taxing authority.
• The library or library system often gets a smaller portion of the funding than the other government services.
• Board members can help city council members or county commissioners put the library in the right perspective.
• The library board makes sure the budget reflects the goals that are set in the strategic plan.
• A board member should work closely with the library director and staff to make sure the budget is understood.
  • The budget should be clear and self-explanatory.
  • It is helpful to have an accompanying narrative for further clarification.
  • The library board with supporters should present the annual budget to the city council or the county commission.
  • The board chair should make the presentation.
  • The library director should attend to answer questions.
  • The annual budget should be presented with facts and figures that prove that the library is a public value and improves the quality of life in the community.
  • Illustrate the progress that the board is making toward its goals.
  • Indicate how the library is offering opportunities for lifelong learning or responding to the needs of the minority population.
• A board member should place him/herself in the position of a council member or a commissioner.
• It helps to keep council members and commissioners informed about what is going on in the library throughout the year.
• Do not make the budget hearing the only time they get to see the board.

Ongoing Budget Responsibilites

• All board members need to have regular updates on the progress of the budget from the director throughout the year.
• Libraries should have a budget status report at every meeting.
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  It is important to see that the library has a contingency fund to stay out of debt, because the tax proceeds come in irregularly.
• Unforeseen events require contingency funds.
• If the budget is over a certain amount, moving funds from one line of the budget to another is done with board approval.
• Money issues are addressed in the library’s financial policy.
• As a tax-supported public entity, the library will be watched closely by the tax-paying public.
• Laws have been created surrounding the spending of those funds.

Liability

• Library boards of public libraries are legally responsible for their decisions.
• They must conform to state and federal laws as well as their bylaws.
• A new library board member should have a discussion with they board chair or library director about liability.
• Power comes from having a seat on the board.
• The state statute will have a section that applies to the liability incurred by those who are part of government entities.
• Advisory board members do not have to know about liability unless an individual board member has done something illegal.
• Municipal library board members should see if they are covered by city insurance.
• County library board members may be covered by county insurance and should clarify to be sure.
• Due to the real concerns about liability insurance legal policy, the common concerns committee of the Association Library Trustees and Advocates and the Public Library Association adopted the following statement:
• It should be considered mandatory that every library have an adequate level of insurance coverage.
• If any claim or action not covered by insurance of State Statute is instigated against a trustee, officer, employee, or volunteer or the Library System arising out of an act or omission by a trustee, officer, employee, or volunteer acting in good faith for a purpose considered to be in the best interest of the System; or if any claim or action not covered by insurance of State Statute is instituted against a trustee, officer, employee, or volunteer allegedly arising out of an act or omission occurring within the scope of his/her duties as such a trustee, officer, employee, or volunteer; the System should at the request of the trustee, officer, employee, or volunteer:
• Appear and defend against the claim or action.
• Library board members should ensure that they are adequately protected against lawsuits. Check to see whether the library has errors and omissions insurance. Errors and omissions insurance should cover any area where a board might incur liability. That includes:
• acts in excess of authority
• errors in acts
• negligence
• nonfeasance or failure to act
• intentional violations of civil law
• acts in violation of the law
• A library should perform a precautionary annual risk assessment of its facilities.
• A board member should pay attention.
• A library board’s failure to act is a liability.
• What can a board member do?
• Read the board packets that come each month prior to meetings.
• Pay attention to the budget reports and the annual audit.
• Know, understand, and follow the library’s policies.
• A board member should not vote on an issue unless he/she thoroughly understands it and is comfortable with their decision.
• A board member should not hesitate to seek legal counsel as needed.
• A board member should be familiar with his/her state’s:
• Open Public Meetings Act
• federal copyright compliance laws
• the library’s compliance with the Americans with Disabilities Act
• public records availability
• A board member should not obsess over the above list, but should be knowledgeable and prepared.

Fundraising

• Expensive areas:
• Buildings
• Furnishings
• Technology
• quality employees
• Making available an up-to-date collection of materials:
• Books
• Magazines
• Movies
• DVD/VHS
• Audio
• Books on tape
• Music
• Few public libraries get enough money from their funding authorities to cover all these expenses.
• Fund-raising activities should be implemented to take care the portion not covered by funding authorities.

Friends of the Library

• The purpose is to raise money and to advocate for with local, state, and federal officials.
• Friends groups can be large, vocal, and very active or struggle to survive.
• Success is dependent and affected by the leadership and support from the library board and staff.
• Friends groups put together fund-raising events and decide how the funds are spent:
• bake sales
• book sales
• plant sales
• Friends groups are often:
• nonprofit
• tax-exempt
• officers
• bylaws
• When priorities do not match that of the strategic plan tension can develop between the friends groups and the board and staff.
• Board members should include the friends group in the strategic plan.
• The board should designate a board member to act as a liaison and attend the Friends of the Library group meetings.

Foundations

• Library foundation is another source of funding.
• People can donate to the library foundation.
• The gift money is tax exempt.
• The foundation:
• is nonprofit
• is created for the purpose of support and fund-raising for the library.
• can do things that the library, as a government entity, cannot, such as:
• apply for grants for which public libraries do not qualify
• accept stocks, property, and cash
• provide a planned giving opportunity
• act as the depositor for either an endowment or a memorial fund
• invest the funds in ways that are more flexible than those allowed to public agencies
• Establishing a library foundation:
• the board of directors must be formed
• the basic legal steps need to be taken
• the articles of incorporation and bylaws need to be prepared and approved
• the application for a 501(c)3 status must be made to the IRS
• private funds, only, will be needed for legal fees and document filing fees

Grants

• Grants can come from:
• public entities
• private organizations
• Public libraries are eligible for only a few.
• Library foundations are eligible for grants.
• The public grant funding comes from the federal government and is initially allocated to state libraries.
• Public grant funding.
• Provided funds for many library buildings.
• Paid for many cornerstone statewide library projects.
• Direct grants are provided.
• A state library, with the assistance of an advisory council, establishes its own priorities for the grant funds.
• Grant funds may given out from LSTA, but the board must be familiar with your own state’s program.
• Sources of private grants:
• PTA
• American Association of University Women
• Rotary
• Sources for funding can be specific to:
• literacy
• diversity
• early childhood development
• A board member's main responsibility is to make sure the library is adequately funded.