News Release

09/18/2006
PPL Trustees Concerned Over Lack of Progress on Agreement with City

Trustees of Providence Public Library this afternoon expressed disappointment and concern that the City of Providence has yet to sign a Memorandum of Agreement that sets the parameters for funding and operation of branch libraries throughout Providence for the current fiscal year (through June 30, 2007).

The Memorandum of Agreement was recommended by the Mayor’s special advisor Neil Steinberg who, after studying the Library’s operations and finances, noted an additional $888,000 was needed to continue the current level of services. The Steinberg Report recommended a band-aid, short-term Memorandum of Agreement to sustain library services through FY 07. The agreement was to specify allocations of up to $250,000 each from the Library endowment and the City to cover any budget deficit in FY 07.

However, the Library’s legal counsel Dan Prentiss reported to the Board of Trustees that the City has made little movement toward any agreement on long- or short-term actions to safeguard the sustainability of its municipal library system. Specifically, Prentiss said the Mayor’s chief of administration John Simmons indicated that the Library and the City don’t need a Memorandum of Agreement for FY 2007, as proposed by Neil Steinberg.

Prentiss also told the Board that the City has not formally agreed to allocate up to $250,000 in the event the Library has a budget shortfall in FY 2007. Further, the City has failed to make its first quarter payment to the Library – once again forcing the Library to borrow funds to keep operations at current levels.

Prentiss’ report drew disappointment, concern and some anger from PPL Trustees, who said that they had acted in good faith following the Steinberg recommendations and expected that the City would do the same.

“If the City has decided not to accept Steinberg’s recommendations, it is our responsibility to revisit our actions for the good of the Library and the people in the City of Providence,” said PPL Trustee Joel Stark.

In accordance with a request from the Mayor in April, the Library postponed action on its FY2007 budget. In July, following Mr. Steinberg’s recommendations, the Library cut its planned pension contribution, deferred maintenance, and agreed to seek an additional $250,000 from the endowment to cover a projected deficit.

“We did certain things contingent on the City’s actions. Do we just go forward if they are not holding up their end of the bargain?” said PPL Trustee Ray Bush.

Following the Board meeting, Mr. Simmons made an unannounced visit to the Library and promised that there would be some movement on the agreement during this week.

“This is very discouraging and disappointing, especially since we have consistently tried to work within the parameters set forth by the Mayor’s own advisor,” said Mary Olenn, PPL Board Chair. Olenn recommended the Board hold off on taking any immediate action and said she would call for a follow-up meeting within two weeks. She noted one encouraging sign is the pending formation of the Mayor’s Municipal Library Group to be chaired by Maria DeCarvalho. DeCarvalho was in attendance at today’s meeting and said, “I’m honored for the opportunity to serve the Library and the City and I share your commitment to high quality library services.”

The role of the Municipal Library Working Group, as identified by Mr. Steinberg, is not to deliver a short-term contract, but rather to begin the task of devising and detailing a new structure for the City's provision of municipal library services to its citizens, and developing a long-term plan for the operation of the municipal library system.