1. Survival in Uncertain Times Library Materials Costs Exploding Lois Schultz April 22, 2003

2. Headlines Crisis in Scholarly Communication Serials Market Declared Dysfunctional Big Chill on the Big Deal Searching for Serials Utopia Do Current Copyright Laws Limit Your Use of Your Own Publications:

3. UNCERTAINITIES Serials costs still on the increase Financial scandals Mergers & monopolies Budget deficits Weak dollar Bundling of journals Archival of content War

4. This Is the World Libraries Are Living in Today

5. What Are We Doing About It? Cutting serials Cutting monographs Seeking more money Participating in consortia sales Purchasing package deals Being creative in other ways

6. Crisis in Scholarly Communication at the University of Kentucky on April 7, 2003

7. UK Symposium April 7, 2003 “The crisis is growing to the point that scholarship and education will be damaged significantly if we do nothing” David Shulenburger, Provost, University of Kansas

8. Serials Increase 1999161,000 Serials Titles 1985/86 103,700 Serials Titles Increase55% Dr. Shulenburger’s Source: Ulrich’s International Periodicals Directory

9. Update of Dr. Shulenburger’s Statistics 2002172,000 Serials Titles 1999161,000 Serials Titles 1985/86 103,700 Serials Titles Increase 65% since 1985/86 Increase6.8% from 1999 to 2002

10. Calibrations Between 1986 and 2000 Consumer Price Index increased 57% Cost of Monographs increased 66% Price of Helath Care increased 111% (’86-98) Cost of Scholarly Journals increased 226% ARL Library Budgets increased 105% Source: David E. Shulenburger’s April 7, 2003 presentation at the University of Kentucky

11. Eye Opening Example If a serials budget were $10 Million in 1986, it would have required $32.6 million to purchase the same number of serials in 2000. But to purchase the same proportion of all serials would have required a serials budget of $49.8 million Source: David E. Shulenburger’s April 7, 2003 presentation at the University of Kentucky

12. Consequences ARL Serials subscriptions- 7% ARL Monographs-17% Impact on scholarship ? Source: David E. Shulenburger’s April 7, 2003 presentation at the University of Kentucky

13. WHY? We gave our intellectual property away to private firms and scholarly societies. They have found they can sell it back to us at prices that will produce profits and/or support the cost of other activities. Source: David E. Shulenburger’s April 7, 2003 presentation at the University of Kentucky

14. Market Power Exists New Entrants do not reduce market power. Top journal in each discipline have market power, that is, they can raise prices without significant loss of subscription volume. Source: David E. Shulenburger’s April 7, 2003 presentation at the University of Kentucky

15. SPARC Scholarly Publishing and Academic Resources Coalition

16. Julia Blixrud was the SPARC speaker at the UK Symposium

17. SPARC is a worldwide alliance of research institutions, libraries and organizations that encourages competition in the scholarly communications market. It introduces new solutions to scientific journal publishing, facilitates the use of technology to expand access, and partners with publishers that bring top-quality low-cost research to a greater audience.

18. One of SPARC’s Programs Alternatives Programs Encourages and supports projects that represent a direct and strong competitive alternative to existing high-price journal titles.

19. Alternative Journals Tetrahedron Letters$10,345 Organic Letters 2,850 Journal of Crystal Growth 9,911 Crystal Growth & Design 1,853

20. ALTERNATIVES HAVE TO BE ACCEPTED BY THE DISCIPLINE.

21. ACRL’s Highest Strategic Priority SCHOLARLY COMMUNICATION INITIATIVE –CLOSE COLLABORATIVE PARTNERSHIPS BETWEEN LIBRARIANS AND OTHER FACULTY TO IMPROVE THE CURRENT SYSTEM OF SCHOLARLY COMMUNICATION

22. Some Statistics

23. Average 2003 Periodicals Cost Chemistry$2,403 Physics 2,358 Technology 1,200 Biology 1,176 Political Science 315 History 137 Music 104 Source: Library Journal April 15, 2003

24. Average 2003 USA Periodicals Cost Chemistry$1,520 Physics 1,520 Engineering 433 Zoology 544 Political Science 149 History 72 Fine & Applied Arts 62 Source: The Bowker Annual 2002

25. Projections Publishers that survive the RoweCom/ Faxon failure will try to recoup cost through price increases over the next few years 2003 cost of periodicals increase just under 12% Weaker dollar Serious state budget defcits

26. This is the environment that we find ourselves in.

27. Budget Subcommittee Clinton Hewan Yasue Kawahara Kathy Schroerlucke Lois Schultz

28. Charge To fine tune the formula for allocating the departmental funds to include the graduate programs.

29. Present Formula X = A + 2B + 3C + D +2E 9 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 5 %.

30. The Subcommittee labored over how to refine the formula to include the graduate program.

31. Recommended Formula X = A + 2B +3C + 3D + E +2F 12 X = Departmental allocation A = Percentage of university’s lower division courses generated by the department B = Percentage of the university’s upper division courses generated by the department C = Percentage of graduate courses generated by the department D = Percentage of the university’s student credit hours generated by the department E = Percentage of the average cost of books published in all subject areas by the average cost of books published in the department’s subject area F = Percentage of the average cost of periodicals published in all subject area by the average cost of periodicals published in the department’s subject area

32. Question Are 500 level courses graduate or upper division? Is the same true if the department doesn’t have a graduate program?

33. Recommended Formula X = A + 2B +3C + 3D + E +2F 12 X = Departmental allocation A = Percentage of university’s lower division courses generated by the department B = Percentage of the university’s upper division courses generated by the department C = Percentage of graduate courses generated by the department D = Percentage of the university’s student credit hours generated by the department E = Percentage of the average cost of books published in all subject areas by the average cost of books published in the department’s subject area F = Percentage of the average cost of periodicals published in all subject area by the average cost of periodicals published in the department’s subject area

34. How do you vote on our recommendation?