Hooray for 414!

Everyone agrees that library usage around the nation is rising in response to tough economic times--actually library usage was rising when the economy seemed fine, but now the rate of increase is itself increasing. For example, circulation in the Troy, NY, library system increased by 16% last year.  But circulation may go back down next year as a result of a different effect of the prolonged recession. Because the Troy Library failed in an effort to set up its own tax district a few years ago,  it remains dependent on whatever money that the City of Troy and the County decide to allocate to the library.  Times are tough in Troy, and the library budget for 2009 has been cut 16%, resulting in it's having to close two of three branches this year.  

Other libraries around the nation are experiencing similar problems.  The library in Muncie, IN, is closing three of its five branches because its budget was cut 42% despite usage going up 7%.  Similarly, in Phoenix, AZ, where the number of visitors to the library system increased by 8% last year, the administration is cutting hours and programs because of a 27% decline in funding. 

Library usage has also been going up for the Pleasant Valley Free Library  every year for the past nine years. These days more and more persons come to use the free computers or Wi Fi to look for work as well as to borrow DVDs or books to occupy their time, since many people are not working.  Our Library does not plan to cut hours or services, however, because of a New York State Law, known in library circles as Chapter 414, that protects Free Association libraries from loss of Town funds once funding has been approved by the Town voters. This puts a floor under the operating  income of the Library.

Of course, not all funding for libraries in New York State comes from Town taxes, even for Free Association libraries.  Pleasant Valley Free Library also derives some of its operating revenue from Dutchess County, from New York State, and from fines and occasional gifts, especially gifts from the Friends of the Pleasant Valley Library. 

Currently, all libraries in the state face a loss in funding of 18% from New York State if the preliminary budget is passed.  Most of this loss affects us indirectly through loss of services from the Mid-Hudson Library System, although the Library does receive a small amount of operating funds from the State.  

Notice that this discussion has been about "operating" funds.  Operating funds constitute the approximately $300,000 per year that it currently takes for the Pleasant Valley Free Library to maintain the collection, pay the staff, heat and light the building, and so forth.  "Capital" funds are separate from the operating funds and do not come from the Town, the County, or--except as an occasional grant for a specific purpose--the State.  For example, the Building Fund for Library expansion, maintained by the Community Foundation,  is funded solely by donors.  In New York State, not only is there the Chapter 414 law that puts a floor under operating income, there are also various rules and regulations that segregate operating and capital for libraries.  The recent repairs and improvements for the Manse were funded by donations from the Sherman Fairchild Fund and from New York State and from accumulated donations to the Library in the past that have been preserved for capital needs.  The Friends also donate to the capital needs of the Library each year.