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News Release
03/29/2007
Providence Could Achieve 25% Savings by Creating Library Department to Manage Neighborhood Services
Savings Achieved Through Economies of Scale
There are multiple options for a Providence Municipal Library System, according to Providence Public Library (PPL) trustees who, at a Board of Trustees meeting today, discussed some of the possible alternatives that the City of Providence may decide to pursue. Specifically, PPL trustees explored the potential benefits for taxpayers should Providence decide to make the Library a department of the City.
“We continue to be committed to operating a strong main library that will offer free accessible library services to residents of Providence and the state and are hopeful that the City will explore all options for its Municipal Library System to ensure patrons neighborhood access to services as well,” said Library Chair Lisa Churchville.
Models used by most urban communities show that Providence may actually be able to cut costs while maintaining the same level of neighborhood library service or even increasing service. The trustees reviewed potential savings for the current Providence system being operated as a City department, determining that there is the possibility of a cost of only $3.8 million, as opposed to PPL’s cost projection of $5 million for FY2008, included in its March 14 contract proposal. Currently, the City’s funding to PPL for neighborhood branch services amounts to $3.75 million, including the State’s grant-in-aid funds. The estimated 25 percent in savings comes from economies of scale that the City can achieve within its $600 million operation.
In addition to taking advantage of its own professional, technical and service functions such as business, personnel, security, and facilities to affect more efficient use of taxpayer dollars, the City has the opportunity to achieve other objectives it and the public currently seek, including:
- Complete control over spending, governance and publicly-funded services
- Better benefits for neighborhood library employees
- Potentially longer service hours
- Efficiencies and/or additional services through co-location of library branches with other City facilities
The PPL Board of Trustees’ discussion referenced a recent example of a library takeover by the City of Springfield, Massachusetts, where library services have actually been increased, even with continued level funding, following the incorporation of the library into the City. Much like PPL, the private, non-profit Springfield Library and Museum Association had for decades provided that city’s public library service through a system of branches. An historic tension existed between the City and the Association, with the City providing 80 percent of the library’s funding, but decisions on the expenditure of the funding being made by the Association. According to Springfield City Library Director Emily Bader, the public could not be more pleased with the resulting City ownership and now feels that decisions are being made by those who are accountable to the citizens.
Earlier this month, PPL submitted a contract proposal to provide municipal library services to the City of Providence, in response to a service proposal outline received through Mayor Cicilline’s Municipal Library Services Working Group. The Library’s proposal projected a cost of $5 million for level services in FY 2008.
At the Mayor’s request, the Library is currently operating the City’s neighborhood libraries under a one year extension agreed upon by the Library and the City to fund a deficit budget. The Library has already provided $520,000 toward the FY07 extension budget, as requested by Mayor Cicilline. The one year extension, which ends this June 30, has followed six years of level funding from the City for branch library services and warnings from the Library that the current system was not sustainable.
Speaking during the PPL Board of Trustees meeting, chair Lisa Churchville said that while the Mayor’s Municipal Library Services Working Group has not, to date, reviewed the information in the joint Strategic Plan, it did request information to do an exhaustive financial study of branch spending. It was as a result of providing requested information for this detailed analysis that the Library came to understand just how much sense it would make for the City to consider running its municipal library services as a department. “We actually shared these insights with the Mayor’s Working Group beginning in January,” said Churchville.
Churchville further expressed PPL’s desire to continue to work with City officials as they strive to make decisions for the upcoming year, including the possibility of a contract. “Regardless of what options the City chooses to pursue for providing library services in the coming year and beyond, our goal continues to be to have a smooth transition, conducted in a timely manner, in order to avoid any disruption in service for Library patrons and employees. This is why we have appointed a Trustee Transition Team, which will begin meeting this week,” she said.