Keywords
Citation
Fitzsimons, E. (2002), "Mills and millions", The Bottom Line, Vol. 15 No. 2. https://doi.org/10.1108/bl.2002.17015bab.002
Publisher
:Emerald Group Publishing Limited
Copyright © 2002, MCB UP Limited
Mills and millions
Mills and millionsKeywords: Public libraries, Employee attitudes, Library users, Crime, Pilfering
The Ann Arbor (Michigan) District Library has made a spectacular comeback from a deficit of $1.25 million in 2000 to a surplus of $3.3 million at the end of the fiscal year in June 2001. The library had not really had an audit since 1996, when a tax-reform measure separated it from the city public schools, of which it had been a part. The news came as quite a shock. The deficit was attributed to mismanagement and embezzlement by the library's ex-finance director, Don Dely. Dely, who resigned from the library in November 1999, pleaded no contest to three felony charges of embezzlement, totaling over $123,000. Each charge carries a maximum penalty of ten years in prison. Suit was also filed against Plante and Moran, the accounting firm the library claims was responsible.
Associate Director of Community Relations Tim Grimes was quoted as saying that tight financial controls were the major factor in the library's recovery, with expenditures ending below projected figures in several categories. The library also levied $1.93 million of a $2 million tax already approved.
In the eyes of the current finance director, Ken Nieman[1], it was not only the stringent financial controls that enabled the library to recover. Two major factors were the staff's ability to remain optimistic in spite of an extremely difficult situation and the support of the library's public.
In deciding where to cut expenditures, the needs of the public were the primary criteria and, according to Nieman, they cut absolutely everything that would not interfere with keeping the doors open. Among measures taken were freezing unfilled positions, postponing building maintenance and repairs, suspending purchases of supplies and, most difficult, severe cuts in library materials. The board authorized up to $10,000 a month on materials. The heat was even lowered, so that fuel bills could be cut. However, one of the more impressive aspects of the period of cutbacks was that the library did not have to curtail its hours at all, and none of the existing staff was let go.
There were several things that helped the staff and the public through this ordeal. First of all, when the library was founded, legislation was passed that allowed the library to levy $2 million in tax revenue per year in perpetuity. This meant that the library was able to take out a tax-anticipation note, which allowed them to borrow on the anticipated tax revenues. And although the library has never levied the entire $2 million, after the audit revealed their precarious position, the board did vote to raise the millage rate from $1.65 million to $1.95 million.
Second, knowing that these drastic measures were short-term and that the situation could be turned around in about a year helped bolster staff morale. Although it was extremely hard on the staff to operate under these conditions, knowing that the end was in sight did help.
Fortunately, the library has a very active Friends of the Library group, which was able to make a generous donation to help maintain some parts of the collection. They attempted to continue popular journal subscriptions and to purchase bestsellers, acquisitions that would appeal to a large number of the library patrons. Throughout this period collection development decisions, in fact all decisions, were aimed at providing the best possible services under the circumstances to the general public.
Finally, the Ann Arbor Public Library enjoys a good relationship with its users. Naturally there were complaints, and people were very distressed that this situation had come about and puzzled as to why the financial state of the library went unnoticed for so long. However, the majority of users were sympathetic and supportive. For example, although some staff-run programs continued, there was no chance of providing anything that took funding, such as the newsletter or bringing in authors or other speakers. However, there were library users who did offer to sponsor programs or donate their services.
The library, in turn, tried to respect the users' need to discuss the turn of events, to vent, to question, to recommend. The staff policy was to welcome discussion of any concerns the public might have, and to make it clear that they were available to talk to patrons. Although the public service staff heard most of the comments, the open-door policy included all staff. This meant that the director's door was also open.
For the staff, including the librarians, the cuts had to be particularly difficult. These severe cuts came at a time when the union that represents about 50 staff members had been negotiating for four years with the library without being able to agree on a contract. As of November 2001, 36 issues remained to be resolved, primarily matters of working conditions and benefits.
With the budget under control and a surplus available, there is money for supplies and collection materials, as well as for new facilities to replace the library's three branches. However, Nieman pointed out that, although they are, of course, relieved that the hardships were behind them, some good came out of the experience. The process required that everyone take a really hard look at library operations. As a result, some permanent changes were made, and Nieman's opinion was "I think we are a better library now."
(Web sources to this column are listed in notes 2-9 below).
Eileen FitzsimonsFitzsimons Editorial Services
Further reading
American Libraries (2001), "Surplus replaces debt at Ann Arbor PL", Vol. 32 No. 11, p. 21.
Notes
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Phone interview with Ken Nieman.
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