ALA Treasurer Rod Hersberger, whose term ends after this year's Annual Conference in June, delivered a report today on the American Library Association's financial picture. His assessment is scheduled for publication in the June-July issue of American Libraries, but here's a preview:
"Over the last three years, I have tried to share information with ALA members about the Association’s finances, and about how their membership supports the Association’s programs and strategic objectives.
"This will be my last message as ALA treasurer, and I’d like to take the opportunity to talk about the current economic challenges facing libraries and the Association, as well as to make some observations about the challenges–and opportunities–that lie ahead.
"Like every organization, ALA has its financial strengths and weaknesses. One of its greatest strengths is that each dues dollar is matched by more than a dollar in revenue generated by conferences, publishing, and grants. As a result, we can accomplish much more than we could if we were totally dependent on dues. Another strength is that because ALA has four major sources of revenue, its budget is more stable than an organization dependent on one revenue source. The bad news is that because the Association has these other revenue sources, it is also vulnerable to forces operating in the business world and larger economy (e.g., the precipitous nationwide drop in advertising last year).
"The crisis that hit the economy in fall of 2008 appears to be easing slowly but unevenly. It is also clear that the library economy lags behind the economy at large as economic growth impacts public revenue, which affects library budgets. Given the depth of cuts to libraries in states such as California, and given the huge deficits still faced by many states, it looks like 2011 may be worse than 2010 for many libraries, and that any recovery in library budgets will be slow.
"As libraries cut back, there will be less money for everything from conference travel to READ posters. This means that ALA, like libraries, will have to make further budget reductions and cuts over the next two years. On the positive side, ALA has carefully built up a reserve which, if used sparingly and specifically, will help temper both the short-term impact of the economic downturn and the transition to a smaller ALA over the next two years.
"All of this only amplifies the need for new businesses and new sources of revenue for the Association that I have been espousing throughout my term as treasurer. Whether or not the economy rebounds, conference attendance and publishing revenue will remain mature businesses. Over the last year, we have begun to look at ways in which we might develop new products for the library community and the public at large. Continuing this effort will produce results over time.
"Whether we are cutting expenses or developing new sources of revenue, the goal of maintaining a financially strong and growing Association is to support the programs and services we provide to members, libraries, and the public. Whether it is advocacy, public awareness, protecting the First Amendment rights of library users, or other programs of critical importance to members, the truth is that we can do more if we have more resources.
"Working together, we have created a respected Association that is financially strong. As we experience what for most of us is the worst recession in our lifetime, we need to deal with the immediate challenges of downsizing and getting through tough times. But we also need to continue to move forward on our strategic objectives, innovate, and support our members as they fight for libraries and library jobs. Through prudent management of our resources, we can also leverage the Association’s financial strength and lay the groundwork for future success."