Today, ALA Executive Director Keith Michael Fiels is sharing the following message with Members and the Association’s governing Council:
As you know, ALA operates on a fiscal year that ends on August 31. Because of the complexity of the ALA budget, which reflects hundreds of thousands of transactions and adjustments each year, the unaudited year-end results are first available just prior to the Fall Executive Board meeting in October.
I am pleased to report that ALA ended the 2011 fiscal year with a small net operating loss of about $250,000 on an overall budget of $46 million. This total ALA budget includes the general fund units, divisions, round tables, grants, and endowment earnings. This $250,000 is actually more than $1 million better than planned, as 2011 was a “spend down” year for AASL and PLA in anticipation of their conferences in 2012.
The general fund units, including ALA’ offices, Conference Services, Publishing, Governance, and support units also ended the year with a deficit. This deficit was roughly $300,000 on the $26 million general fund budget.;
As has been the case for many libraries, 2011 once again proved to be a difficult year. While some revenue sources (such as advertising) >showed signs of recovery, other areas (such as interest income) declined. While a year-end deficit was anticipated as early as April, the Executive Board made the conscious decision then that we would use reserves to cover the deficit. These reserves have been built up over the last decade to provide for just such a situation.
Because of the unusual economic uncertainties we continue to face, we also made the decision to adjust our 2012 budget in October in light of final 2011 revenue figures.
To this end, ALA managers have been working over the last month to trim our FY2012 general fund budget by $1 million—from $28 million to $27 million—in order to ensure a balanced budget this year. This revised 2012 budget figure is based on lower revenue expectations, in light of our final 2011 numbers.
I am pleased to report that we have been able to make these budget reductions without any layoffs. In addition, I am happy to report that we have been able to retain our planned 2% salary increase for ALA staff, who have not received an increase in two years.
This third round of budget reductions will have an impact on the Association, however. Four additional positions that are currently unfilled will be “unfunded”, and the reductions will also affect some parts of the Association that have not seen reductions to date, including the Washington Office, ITTS, and the Office for Intellectual Freedom. In making these reductions, we have placed a priority on maintaining programs and services for libraries and members, and on continuing to move ahead on the strategic goals of the Association. ALA member leaders, managers and staff continue to find creative ways to increase productivity, while re-evaluating every process and activity in light of limited resources.
A more detailed report on the 2011 Year End Results and 2012 budget will be forthcoming shortly from Treasurer James Neal.
