allocating the library materials budget lois schultz november 11, 2002

ALLOCATING THE LIBRARY MATERIALS BUDGET

Lois Schultz

November 11, 2002

The library is just like the family. There needs to be some

guidelines. In Libraries these guidelines are often called

formulas.

Example of a Formula

X = A+B+2C

4

Where X = Departmental percentage of the budget

A = Departmental faculty: % of the total faculty

B = Departmental courses: % of the total courses C = Departmental student credit hours: % of

the total student credit hours

Groups of Variables

1. Departmental

2. Publication

3. Library use

4. Other

Departmental Variables• Number of credit hours

– Graduate

– Upper Division

– Lower Division

• Number of courses

– Graduate

– Upper Division

– Lower Division

• Number of majors

• Number of graduates

• Number of faculty

Publications Variables

• Cost of materials– Serials– Books

• Number of items published

Library Use

• Circulation of items in the collection

• Interlibrary loan requests

• Library research orientation of the field

• Faculty publications

Other Variables

• New Programs

• New faculty

• Programs of distinction

• Accreditation

• Historical allocation

• Historical collection development

Little consistency in which variables are used.

The goal is to have a balanced collection.

“A balanced collection proportionally reflects all the programs, instruction and research conducted in an institution.” David Genaway

Source: Library Acquisitions: Practice & Theory, Vol. 10, pp. 287-292,

1986.

Steely Library’s History

Climate Ripe for Change or Review

•New Associate Provost for Library Services

•56% of libraries surveyed changedformula every five years

•Have more faculty input

• LIBRARY MATERIALS BUDGET ADVISORY COMMITTEE

ESTBLISHED IN 2002

Library Materials Budget Formula

April 22, 2002

By

Fred Beasley

Tom Heard

Don Kelm

Lois Schultz

Formulas can be simple or complex. They can become so complex that the time and cost of applying the formula negate the benefits.

“The best formula is one that quantifies need with the minimum number of variables, since each variable adds time and expense of data collection as well as the number of calculations that must be made to implement the formula.” David Shappert

Source: Tuten, Jane H. and Beverly Jones, Allocation Formulas in Academic Libraries, American Library Association, 1995.

Formula needs to be fair and one that meets the true needs.

Variables We Chose

• Courses– Lower Division– Upper Division

• Credit Hours

• Cost of Materials– Books – Serials

FormulaX = A + 2B + 3C + D +2E

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Where X = Departmental allocation

A = Lower division courses

B = Upper division courses

C = Credit hours

D = Cost of books

E = Cost of serials

No department could lose or gain more than 10%.

BUDGET FACTS

• Materials budget increase has been nil or low for many years.

• Cost of materials increase faster than the consumer price index.

• New formats of materials are expensive.

BUDGET

0

100000

200000

300000

400000

500000

600000

700000

800000

1997 1998 1999 2000 2001 2002

Budget

Cost of Books

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

1989 1998 1999 2000

Books

Cost of Serials

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

1984 2000 2001 2002

Serials

Books and Periodicals Compared to Consumer Price Index

0

2

4

6

8

10

12

1996 1997 1998 2000 2001

PeriodicalsCPIAcademic books

CONSUMER PRICE INDEX

0

2

4

6

8

10

12

1996 1997 1998 2000 2001

CPIPeriodicalsAcademic Books

Why the High Rate of Increase for Periodicals

• Technology investments• Increases in paper cost• Increase in postage• Page & volume increases• Strength of dollar• Electronic journals

– Bundle paper and electronic

• Cancellations cause publishers to raise prices– Consortial sales– Document delivery– Pay per view– Price

• Mergers and buyouts cause increases in conversion and realignment• General inflation

Problem

• Budget static or shrinking

• Serials cost increasing at a significantly higher rate than the consumer price index.

Result for 2002/2003

• Serials off the top

• Formula to allocate the remainder

Future Prediction

2003-2004 2004-2005Total Budget 783,998$ 783,998$ Off the Top 50,940$ 50,940$ Serials 712,609$ 776,744$ Remainder for monographs 20,449$ (43,686)$

This doesn't include any increase for Off the Top in 2003-2004 or 2004-2005.

Off the top includes reference books, general books, library science items, honors, multicultural items, and lisison funds.

WANTED

• Input on how to solve the problem