Michigan’s Libraries
• Michigan Library Community
• Library Funding Streams
• Mi Dashboard – Metrics and Outcomes
• Value for Government
• Health and Education
• Economic Strength
• Erosion of Library Funding-Perfect Storm
• What’s at Stake
Michigan Library Community
Academic Libraries (University, Community College, Private) – 100
Public Libraries (City, Township, District ) – 385
K- 12 Libraries (Public, Academies) – 1,000
Public Library Cooperatives - 11
Public Libraries - Operating Income by Source - FY 2009
Michigan's public libraries received over $444 million total operating income, an average of $44.61
received to provide service for each Michigan resident.
Federal Income,
0.04%
Millage, 72.61%
Local Income,
97.79%
Appropriated Tax,
8.87%
Penal Fines, 7.11%
State Income, 2.16%
Local/PPT, 9.20%
PA 89
STATE AID TO PUBLIC LIBRARIES ACT (EXCERPT)
Act 89 of 1977
397.566 State aid for public libraries
Simple translation – public libraries shall receive a total $1.50 per capita
Distribution:
1/3 – public library
1/3 - library cooperative
1/3 - public library to buy cooperative library services- swing aid
“Shared Sacrifice” – 76% Cut Since 2000
$16,000,000
State Aid to Public Libraries
$14,000,000
$12,000,000
PA 89 Statutory Requirement $1.50/total per capita - $15 million
08-09 Current funding $0.96/ capita - $10 million
09-10 SB 247 Senate Proposed Budget $ 0.75/capita- $7.5 million
11-12 Budget $3,445,700 + $950,000 for MeL
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Years starting in 1972 - 2012
Penal Fines
STATE CONSTITUTION (EXCERPT)
CONSTITUTION OF MICHIGAN OF 1963
§ 9 Public libraries, fines.
Sec. 9.
The legislature shall provide by law for the establishment and support of public
libraries which shall be available to all residents of the state under regulations
adopted by the governing bodies thereof. All fines assessed and collected in the
several counties, townships and cities for any breach of the penal laws shall be
exclusively applied to the support of such public libraries, and county law libraries
as provided by law.
MiDashboard – Metrics and Outcomes
Value for Government
Statewide Collaboration, Group Purchasing, Cost Savings
Value for Government
Statewide Collaboration, Group Purchasing, Cost Savings
MeL Databases
• Cost of MeL Databases
• Statewide Replacement Cost
$ 5,000,000
$72,000,000
Case Studies –Actual Replacement Costs
• Western Michigan University
• Oakland Community College
• Portage District Library
$
$
$
417,400
321,500
497,697
MeLCat Interlibrary Loan
• Current Cost of MeLCat Delivery for 400 libraries
• Replacement Cost for Materials
$ 741,000
$ 23,125,000
Value for Government
MeL by the Numbers
 Unique Users in MeL Databases
 Searches in MeL Databases 2009
 MeLCat Interlibrary Loans 2010
 Increased Demand for MelCat Loans 2010
1,211,455
38,523,800
1,000,000
33%
Value for Government
Access to Government Online Services
The State is moving information online and expecting citizens to comply
Filing for unemployment online
Downloading tax forms and filing for taxes online
Renewing your driver’s license online
Every library in Michigan has computers and internet access
9,536 computers with internet access in public libraries
When citizens cut off their internet they go to their libraries
64% of libraries - only source of free Internet access in their
communities
1/3 of Americans don’t have access to the internet at home
Capital Area District Library – wireless usage 116% increase in 6 months
Escanaba Public Library – 30% increase in computer users last year
Benton Harbor Public Library – 30% increase in computer usage
Value for Education
Education and Literacy
 Lifetime learning – Pre-K through Senior Citizens
 Children’s Programs
 Summer Reading, Ready to Read programs and more
 08-09 served 2 million children
 MeLibrary provides online testing K-12, ACT, AP Tests, GED, PSAT
 MORE - aligned with MI Department of Education content standards
Economic Strength
Workforce Development
 People use libraries to apply and search for jobs online at libraries
 96% of libraries provide career, job search and resume
preparation materials/assistance
 MI Works Agencies refer clients to libraries
 78% of libraries partner with MI Works locally
 7 libraries serve as service centers for MI Works
 Every library is connected to MeLibrary
Learning Express online database for certification & training
Civil Service, nursing, police & fire certification
Economic Strength
Economic Development
 Economic Gardening -market research and business start-up information
MeL is the open-source portal for small business market research
 Libraries have small business centers and business librarians
 Portage District Library, Grand Rapids Public Library, Capital Area
District Library
Erosion of Library Funding Streams
“Perfect Storm of Cuts”
 Tax Capture and Renaissance Zones
 Diversion of Penal Fines to Other Sources
 Slashing State Aid to Public Libraries
 Elimination of Personal Property Tax
 Library Millages Dropped 4-10% Last 3 Years
Erosion of Library Funding
Tax Capture
 Locally voted dedicated millages are being eroded by tax capture mechanisms
 1312 tax capture authorities – more than townships in Michigan
 Capturing or diverting dedicated millages: libraries, 911, police & fire, counties,
 Community colleges, k-12, seniors
 Total capture/diversion - $150,000,000 - 2006
 Downtown Development Authorities
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Corridor Improvement Authorities
Brownfield Redevelopment Authorities
Local Development Finance Authorities
Historic Neighborhood Authorities
Neighborhood Enterprise Zones
SMART Zones
Erosion of Library Funding
Tax Capture
 Unintended Consequences of Tax Capture on Library Millages
 Libraries losing $10-15 million annually from dedicated library millages
 Portage District Library - $98,085/year
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Paw Paw District Library - $23,000/year
Grand Rapids Public Library - $400,000/year
Detroit Public Library - $ 4 million/year
Battle Creek - $ 830,000/year
Herrick District – Holland - $ 263,116/year
Capital Area District Library - $658,000/year
Royal Oak Public Library – $121,700/year
Litchfield Public Library – budget of $60,000/$27,960
Howell District Library - $19,819/ DDA & TIFA
Benton Harbor Public Library – $10,000/year
Saginaw District Library – $49,505/year
VanBuren District Library - $25,000/year
Erosion of Library Funding
Renaissance Zones
MICHIGAN RENAISSANCE ZONE ACT (EXCERPT)
Act 376 of 1996
 125.2692 Reimbursement to intermediate school districts, local school
districts, community college districts, public libraries, and school aid fund
Libraries lose $ 3 million annually from dedicated millages
Reimbursement eliminated in FY 10 & FY 11 budgets
Restored for K-12 in 2011 budget – but not for libraries
 Hart Public Library
 Grand Rapids Public Library
 Kalamazoo Public Library
 Willard Public Library
- 37% of total operating budget
- $389,021 annual loss
- $ 94,548 annual loss
- $ 87,833 annual loss
Erosion of Library Funding
Elimination of Personal Property Tax
Elimination of the Personal Property Tax would be one more severe
blow to public library budgets. Some examples of cuts are below.
 Detroit Public Library
 Portage District Library
 Ann Arbor District Library
 Clinton-Macomb Public Library
 Kalamazoo Public Library
 Muskegon Area District Library
 Independence Township Library
 Chrystal Falls District Library
 Battle Creek District Library
 Hackley Public Library
$ 6.8 million
$ 535,385
$ 659,000
$ 270,433
$1.2 million
$ 168,283
$1,084,179
$ 39,612
$ 700,000
$ 111,525
Erosion of Library Funding
Penal Fines
Constitutionally Mandated Penal Fines are Diverted to Other Uses
 Michigan Vehicle Code
 Motor Carrier Act
 Motor Carrier Safety Act
 Code of Criminal Procedure
 Laws give 70% to other uses / 30% to libraries
What’s At Stake?
 Implosion of MeLibrary –statewide databases and MeLCat interlibrary loan
Closure of 11 library cooperatives and unknown pension liabilities
 State matching funds and maintenance of effort (MOE) requirement
State aid to public libraries serves as the primary MOE requirement to
sustain the $5 million from LSTA that pays for MeL and MeLCat
Required amount - $10 million
State has received two waivers from the federal government
State Library Funding
Budget Lines
2010-11
2011-12
Library of Michigan
$4,566,900
$3,879,200
State Aid to Public Libraries
School Aid Fund
Michigan eLibrary
$5,750,000
$1,500,000
$3,445,700
$ 950,000
State Library Funding
Maintenance of Effort Categories FY 2012
LOM –Statewide Services
State Aid to Public Libraries
Michigan eLibrary
$ 200,000
$ 3,445,700
$ 950,000
Total
$ 4,595,700
MLA Budget Request
State Aid to Public Libraries
Michigan eLibrary
$ 5,750,000
$ 1,500,000
Total
$ 7,250,000
Hold Library Funding Harmless at last year’s level: $7,250,000