June 7, 2005

SUBJECT:      Analysis of Library Materials Funding Study Issue

REPORT IN BRIEF

At the Study Issue Workshop held on December 16, 2004, Council directed library staff to analyze expenditures for all library materials and compare data to that of our neighboring libraries.  The libraries included in the study were Cupertino, Palo Alto, Mountain View, Santa Clara and Sunnyvale. Using statistics gathered from the California State Library, comparisons were made of the materials expenditures, size of the book collections, the total annual circulation and circulation per hour of the five libraries studied.

The findings indicate that although Sunnyvale’s total materials expenditures are somewhat comparable to the neighboring libraries, because Sunnyvale has the highest population, the per capita spending is the lowest. The same holds true for the size of the book collection.  Sunnyvale’s book collection size is similar to some of the other libraries, but again because of the larger population of Sunnyvale, the holdings per capita is at the bottom.  This means that we have fewer books per resident than the surrounding libraries.  Circulation has risen 57% in the past five years while the size of the collection and the materials budget has increased only modestly.  Without additional funding, the library will be unable to meet the information and recreational needs of the residents of Sunnyvale.

Even though it is clear that Sunnyvale is lagging behind the neighboring libraries in per capita spending and collection size, because of the current economic situation, staff is recommending Alternative #1 which states that the library will continue to use Public Library Funds (PLF) to supplement the library materials budget in FY 2005-2006.

BACKGROUND

In 2001, an analysis of library expenditures for children’s materials was undertaken to determine whether existing resources were adequate to meet the high demand for children’s materials.  The analysis included comparisons with libraries in the immediate area and those serving communities of comparable size. It also included a study of the level of use of children’s materials represented by circulation statistics (how many items are checked out of the library) and turnover rates (the average number of times each item in the library collection is loaned).  The findings of this study indicated that the total circulation of children’s materials had increased 38% in the previous five years (FY 1197-1998 to FY 2001-2002) and the turnover rate had increased as well. The results of the comparison with other libraries indicated that the Sunnyvale Library had the lowest per capita spending per child.

In an attempt to remedy this situation, $40,000 was added to the children’s budget over a two year period, with $20,000 being added in FY 2002-2003 and $20,000 more added in FY 2003-2004.  Also in FY 2002-2003, $20,000 was reallocated from the adult materials budget to the children’s material budget, resulting in a total increase of $60,000 to the children’s budget. However, during the internal review process for the FY 2004-2005 and FY 2005-2006 library budget, it was decided that the $40,000 should be removed from the base budget as a cost saving measure.  At that time, staff was directed to submit a budget supplement (See Attachment 1) for Council’s consideration to restore this money to the budget.  At the budget proceedings, the Council expressed support for children’s materials, but nevertheless, voted to remove the $40,000 from the operating budget.  Council directed staff to make use of Public Library Funds (PLF) to make up the difference. PLF is provided on a per capita basis to supplement, not supplant, local library revenues.  PLF is to be used to augment services at the local library jurisdiction’s discretion. The future of PLF funds is uncertain, as recently less money has been made available from the state.  Supplementing the children’s materials budget annually to meet the appropriate funding levels by using PLF funds on an on-going basis may not be viable for a program that is apparently fundamental. 

The Board of Library Trustees requested that library staff prepare a Council Study Issue paper in a Report to Council in 2005 (See Attachment 2) seeking to once again address the issue of children’s materials funding.  At the recent study issue workshop, held on December 16, 2004, Council directed the staff to change the study to one that would address the funding of all library materials, not just children’s, comparing materials expenditures with that of our neighboring libraries.

EXISTING POLICY

DISCUSSION

The primary focus of this study was to compare Sunnyvale’s per capita expenditures with that of our neighboring libraries.  Per capita expenditures are of particular interest because they show the average amount of money spent for each resident.  An overview of the book collection size and corresponding holdings per capita is also included to further clarify the relationship between the size of the collections and the spending patterns. A comparison of circulation statistics was included as well, since these figures illustrate the rise in library use over a given period of time.

The libraries used in the study were Santa Clara, Mountain View, Cupertino and Palo Alto. These libraries were selected because of their similarity to Sunnyvale in terms of demographics, educational attainment, household income and proximity.  San Jose Public Library and the Santa Clara County libraries (except for Cupertino) were not used because these large, multiple branch systems are quite different from a central stand-alone library, such as Sunnyvale. The data for this study was gathered from the publication, California Library Statistics, 2004, published by the California State Library. This annual publication cumulates key data about public library collections and services in California.    The most recent published data is from FY 2002-2003.  Circulation data for FY 2003-2004 was obtained by contacting the individual libraries.

TOTAL PER CAPITA EXPENDITURES

The following table shows the population, total materials expenditures and expenditures per capita for each of the above mentioned libraries. 

Table 1

2002-2003

Materials Expenditures

*Cupertino’s expenditures are tied with that of Santa Clara County Library System.  The Program Manager for Cupertino provided this estimate.

Although Sunnyvale ranks second in materials expenditures, it is the lowest of the compared libraries in expenditures per capita. While Cupertino is spending an average of $11.25 per resident, Sunnyvale is spending $5.22 per resident. Furthermore, except for Cupertino, for which we do not have statistics, each of these libraries are open substantially more hours per year (some have branch libraries), with higher circulation per capita and higher expenditures per capita as well.  However, Sunnyvale circulates considerably more materials per hour with less staff.  For example, Sunnyvale circulates 525 items per hour as compared to Palo Alto who circulates 91 items per hour. The figures in Table 1 represent expenditures from FY 2002-2003 and include $20,000 for children’s materials that has since been removed.  Without this $20,000 the expenditures per capita would have been even lower that year, which will be the case in FY 2004-2005. 

One of the goals of the Sunnyvale Public Library as stated in Policy 6.2A.1 of the Library Sub-element is to “provide a collection of materials in print, audiovisual and electronic formats in support of all library services.” Action statement 6.2A.1a states that the library will “provide a collection of adequate size, quality and diversity that reflects the changing needs of its customers.”  In order to meet these goals the library needs to have adequate funding to buy high quality library materials in sufficient quantities and varying formats to respond to community needs for information and enjoyment.  The materials budget has experienced only modest growth over the past five years even though the circulation of library materials has grown by 57%.  In FY 1999-2000, the library materials budget was $603,490.  In FY 2003-2004, the budget had increased to $668,313 which included the addition of $40,000 for children’s materials and adjustments for inflation of between 2% and 3% each year.  This year, FY 2004-2005, the materials budget is back down to $634,596 which represents a decrease of $40,000 and an inflationary adjustment of about 1%.  If the budget continues to lose ground or remain the same, the ability to maintain a high quality collection will decline and the library will not be able to meet the high demand.

There are several challenges that will grow more acute without adequate future funding.   The Sunnyvale community is increasingly diverse, not only becoming a multi-ethnic community with the accompanying cultural and language differences, but a community of varying age groups, educational levels and interests.  Nearly 40% of Sunnyvale residents are foreign born and almost 20% speak a language other than English at home.  The library’s collection needs to have sufficient materials to support the reading needs of this large population group, many of whom find reading in English both difficult and tedious. At the same time the library needs to have a strong English as a Second Language collection for newer immigrants needing help with their language skills.

Another challenge is service to a growing population of both senior citizens and children and youth under the age of 19.  As the Baby Boomers age, materials in large print and audio formats are becoming increasingly desirable as well as materials on retirement, health, leisure time activities, travel and other topics of interest to this age group. At the other end of the spectrum is the children’s collection, which is heavily used by both children and their parents.  Sunnyvale’s parents, who are highly educated themselves, are actively involved with their children’s education and require ample materials in various reading levels and subjects to support the school curriculum.  The budget for the children’s collection already does not match the high use of this age group.  Providing service to the growing teen population is another challenge.  The teen collection was established in 1998 with existing book budget funds.  Use of this collection is high, but there are not adequate funds to fully develop this section of the library. 

Finally, the cost of library materials continues to rise.  According to the Bowker Annual, 2004, the average price of a hardcover fiction title was $24.97 in 1997 and $27.56 in 2003, an increase of over 10%.  The price of electronic resources, fast becoming part of the standard library collection, rises each year as well.  As the cost of library materials increases, our buying power decreases, making it more difficult to provide materials in sufficient quality and quantity.

PER CAPITA EXPENDITURES BY MATERIAL TYPE

A further breakdown of library materials spending is illustrated in Table 2.  The overall expenditures and per capita spending for children’s materials, audiovisual materials, electronic resources and print materials are shown here. The children’s materials per capita spending is calculated by using the child population for ages 0-14, as reported in the California Library Statistics, while all other per capita spending figures were calculated using the total population of the corresponding city as listed in the previous table. It is important to note that Table 2 is not a complete breakdown of the total expenditures in Table 1.  The cost for microfilm was not included since this data was not readily available from the other libraries.  Also, although the children’s materials expenditures are shown separately, that number is included in the total for print materials as well.

Table 2

2002-2003

Per Capita Spending by Material Type

(Actual expenditures in italics)

          * Print materials includes spending for adult, teens and children.

          ** These figures were not available from Cupertino.

Children’s Materials

The second column in the table above shows per capita spending for children’s materials. Sunnyvale is spending $4.79 per child, almost $8.00 less than Santa Clara, which is spending $12.28 per child.  With the removal of the $40,000 from the children’s budget in FY 2004-2005, the per capita spending will fall even further behind.  The Library Sub-Element states that providing adequate children’s services is one of the main priorities of the library.  Without additional funds, this priority will be difficult to maintain. The circulation of children’s materials has risen 66% in the last five years (FY 1999-2000 to FY 2003-2004) and the demand is expected to continue.  Because children’s materials are so heavily used, they wear out more quickly and need to be replaced more often.  With current funding it is difficult to replace older, classic titles and purchase multiple copies of new titles.  In FY 2003-2004, there were 704,568 items checked out from the children’s room which accounted for 33% of the total library circulation.

Furthermore, the public library plays an increasingly important role in childhood literacy.  Many of the parents in the community are well educated and place a high priority on literary skills and academic achievement of their children.  The school libraries in Sunnyvale, like most in California, have been underfunded for many years.  They are understaffed and the materials are worn and outdated.  Students must depend on the public library to find an adequate number of copies of materials that support classroom learning.  Children in earlier grades need plenty of materials to practice their reading skills, both for information and for pleasure.  The library also supports homeschoolers, whose only outlet for library materials is the public library, by providing materials for their academic needs as well as for leisure reading opportunities.

Audiovisual Materials

The third column in Table 2 shows the spending for audiovisual materials.  These include audiobooks in two formats, music CDs, videotapes and DVDs. This group of materials accounted for 30% of the total circulation in FY 2003-2004, indicating a very high demand for materials in these formats, however, the per capita spending is among the lowest of our neighboring libraries.  Audiovisual materials are an essential and integral part of the entire collection.  For many library patrons, including those for whom English is a second language, the audiovisual collection is the desired format for acquiring English language skills. Patrons studying for citizenship tests find watching a videotape much easier than reading a book.  Other patrons, for whom reading is difficult, enjoy listening to books on tape or watching DVDs, enabling them to gain information in a format that suits their needs best.  Many topics of interest to Sunnyvale residents such as travel, home improvement, exercise and ballroom dancing are better presented in an audiovisual format. 

Electronic Resources

Per capita spending for electronic resources at Sunnyvale Library falls in the middle of the spending range for the compared libraries.  Even though funds have been adequate in the past, this is an area that is growing extremely fast.  As information becomes increasingly ubiquitous, library services must respond by offering new formats and methods for accessing information.  In some cases, purchasing access to information is more costly than acquiring reference books which previously provided that information.  Action Statement, 6.2A.1c in the Sub-element states that the library will “explore the addition of new formats as technologies change and customer interest indicates.” If the library does not keep up with the acquisition of electronic resources for information, the scope and timeliness of library information will diminish. 

Print Materials

The final column in Table 2 shows spending for print materials which includes books for children, teens and adults and also periodicals for all ages.  Sunnyvale’s per capita spending, at $3.80 per resident, is once again the lowest of the libraries compared.  Although many other formats are available, print remains the backbone of the library collection, making up almost 60% of the circulation and for many, is still the format of choice. Library print materials support the concept of lifelong learning, starting with board books and easy readers for toddlers and children learning to read, through school-aged children’s need for supplemental material for school projects, on up to adults and senior citizens who use the library as a resource for personal growth and enjoyment as well as for job advancement and career change.  The library supplies a necessary service to the community by providing equal access to materials on a vast variety of topics, chosen to appeal to residents of all ages, backgrounds and educational levels. It is important that we have adequate funds to provide a current and high quality collection of print materials to support the learning needs of Sunnyvale residents.

COLLECTION SIZE

Book Collection

The size of the book collection and the holdings per capita for the five libraries in this study is shown in Table 3.  The book collection was chosen to compare because books comprise the majority of the library holdings and the data is readily available.  These figures include all print materials owned by the library for adults and children except for serials, periodicals or other formats.

Table 3

2002-2003

Book Collection

*This figure was taken from the American Library Association Directory, 2003-2004

The book collection sizes range from 239,584 (Palo Alto) to 312,614 (Cupertino) with the average being 276,373.  Sunnyvale has 19,282 fewer items than the average of the five libraries.  Furthermore, because Sunnyvale’s population is larger than the other libraries, the number of books per capita is the lowest.  Lacking a nation-wide standard for per capita book holdings, a good indicator of an appropriate holdings level is to compare the holdings per capita of similar libraries and calculate the average.  In this case, the average number of books per capita is 3.6.  To bring Sunnyvale up to this level, we would need a book collection of 477,000 items.