I suspect my posts for the next few days will have a financial theme as we wrestle with the prospect that the Legislature will use local property taxes as a source of revenue to balance the State budget with dire consequences for libraries like PVLD and most County libraries that depend on property taxes as their primary source of revenue.
Today's update from our California Library Association lobbyists was not encouraging - but it does provide a good overview of the current impasse in Sacramento. Here at PVLD we've embarked on a campaign to enlist as many library supporters as possible in telling the Legislature to keep their sticky fingers off our local money with flyers and posters in the library, information on the website, and email blasts.
PVLD employees are understandably anxious about the situation, and the Department Managers and I are doing our best to provide provide frequent communications. For those who are interested in the view from inside, here's the text of an email sent to all employees today:
To all PVLD staff –
I know many of you have questions about the potential “borrowing” of property tax revenue and the impact on PVLD. At this stage not much is clear, but this is what we DO know:
1. The state can legally borrow up to 8% of our property tax revenue – this equates to about $500,000 loss of revenue for PVLD this fiscal year, and occurs in a context where we also know we are facing a $300,000 budget deficit next fiscal year. My goal will be to find ways to address the shortfall without having to lay off any staff – I believe this is achievable but it will be challenging.
2. The proposal by Legislators to borrow property tax revenues is just that, a proposal. We do not know whether it will actually happen, and we may not know for some time. The best thing we can do to prevent it happening is to make our voices heard by calling, writing, and emailing the Governor, leaders of the Senate and Assembly, and local legislators.
Until we know the outcomes of the State budget situation we would be foolish to commit any funds that are not absolutely essential. This means we are not filling vacant positions and are asking people to work across Department boundaries to help cover as necessary. We currently have two vacant positions – a part-time Adult Services Librarian and a part-time Annex Assistant that will not be filled until we are certain there will be no loss of property tax revenue. We will all need to pitch in to help cover these positions as necessary as well as any others that might arise.
3. Department Managers are developing options for reducing costs and for generating additional revenue. Your Manager has information about the options that have been identified to date. Many of these will require approval of the Board of Trustees. Some of them we may implement even if we don’t lose property tax revenues as they will help us address next year’s shortfall.
4. We are trying to make wise decisions about cost reductions that don’t jeopardize our long-term future. For example we hope to continue to invest in staff development, in technology innovation, in community outreach, and in facilities maintenance and improvement as if we fall behind in these areas we compromise the long-term viability of the library. Similarly we don’t want to cut library services to the extent that usage and community support decrease.
How YOU can help –
1. Make calls to legislators yourself and by making sure every library user gets information about the potential loss of revenue and how to contact legislators.
2. Identify cost reduction and revenue enhancement ideas and share them with your Department Manager. (NB – I am still reviewing the list of ideas submitted in May and will announce a winner soon! It’s been hard to find time to do the analysis)
3. Continue to be flexible and to pitch in as needed so we can maintain high quality services across all PVLD locations and all departments.
4. If you have questions, raise them with your Department Manager. If they don’t know the answer they’ll find out.
Thanks for your support.
If you're a library supporter please help by calling our legislative leaders today! Tell them that their failure to reach a budget agreement does not constitute a "fiscal emergency" that warrants raiding local property taxes...but if is the only way out of the impasse, public libraries, who by definition have limited ways of generating revenue to make up the shortfall must be exempted. If not we will be forced to cut hours, services, and book purchase at the very time our communities need us most.
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