Tuesday, June 10, 2008

Indiana Libraries, small vs. large -- bigger isn't necessarily better -- it's just different

A study of the 2006 statistics of Indiana’s 239* public libraries illustrate that when the largest public libraries are compared to the smallest, there is no evidence that larger libraries are more efficient than smaller or that they are a much better bargain for taxpayers.

1. The tax rates for larger libraries are slightly greater than for the smaller – The average tax rate for the larger 117 libraries that collect property taxes is $.1066 per $100 of assessed valuation and the average tax rate for the smaller 117 libraries is $.1050. The slightly higher rate for larger libraries appears to refute the assumption that there would automatically be savings if smaller libraries were consolidated into larger units of service.

2. The average operating expenditures per person for the larger libraries and the smaller libraries are very nearly the same - The average operating expenditure for larger libraries is $47.59 per capita and the average operating expenditure for smaller libraries is $47.44 per capita. The difference is less than 1%.

3. Larger libraries spend slightly more on library staff than smaller libraries – Larger libraries spend an average $28.90 per capita for personnel services representing an average 62% of their total operating budgets. Smaller libraries spend an average $26.74 per capita for personnel representing 56% of their total operating budget. Larger library average personnel expenditures are 8% greater than for smaller libraries.

4. Smaller libraries spend slightly more on books and other materials than larger libraries – Smaller libraries spend an average $6.86 per capita for books and other library materials representing an average 15% of their total operating budget. Larger libraries spend an average $6.15 per capita for library materials representing 13% of their total operating budget. Smaller library average material expenditures are 12% greater than for larger libraries.

5. Many more larger libraries have bonded indebtedness than smaller libraries – 65% (75 of 119) of larger libraries have a tax levy for a bond and interest redemption fund compared to 32% (38 of 119) of the smaller libraries.

6. Many more larger libraries collect extra tax levies for capital projects than smaller libraries – 51% (60 of 119) of larger libraries have a tax levy for a library capital projects fund compared to 24% (28 of 119) of the smaller libraries.

Methodology - There are 239 library districts in the State of Indiana. The Joyce Public Library, Tyson Library Association, and the Fortville-Vernon Township Public Library do not collect a property tax levy to fund their operations so their tax rates are excluded from this study. The Willard Library and the Evansville –Vanderburgh Public Library share the tax collections in the library district so their taxing totals are combined and factored as a single library. Larger libraries versus smaller libraries were ranked according to the population served. The division of 117 was made between the Winchester Community Library with a population of 8,879 and the Garrett Public Library of 8,834.

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