1. Total ALA FY 2010 Preliminary Budget American Library Association Executive Board 2008- 09 Spring Meeting April 24th – 26th, 2009 2008 - 09 EBD# 14.8 Presented by: Keith Michael Fiels – Executive Director Gregory L. Calloway – AED Finance Rodney Hersberger - Treasurer

2. Budget Aligned with ALA Programmatic Priorities  Advocacy for Libraries and the Profession  Diversity  Equitable Access to Information and Library Services  Education and Lifelong Learning  Intellectual Freedom  Literacy  Organizational Excellence

3. Broad Institutional Strategies  Promote ALA’s Mission and Strategic Goals  Anticipate and respond to environmental factors which present opportunities or threats to the organization  Influence legislation and regulation  Establish and support a network of relationships that promote ALA’s mission and priorities and facilitate the delivery of ALA’s message and educational programs

4. Broad Institutional Strategies (con’t)  Develop and promote appropriate technical standards and guidelines which strengthen library services and the profession  Build on the Association’s membership strength and focus on member satisfaction, retention and recruitment  Manage the Association’s resources as efficiently and effectively as possible  Focus on member needs, satisfaction, retention and recruitment

5. ALA’s Financial Value Proposition “To develop and deploy the financial resources that support the strategic plan and delivery of programs that are responsive to member needs and the improvement of library service.”

6. Key 2010 Budgetary Assumptions  Zero growth anticipated in the general library economy – negative impact on expected ALA revenues  Expectation of an additional $525,000 in GF overhead due to the PLA and AASL national conferences  Targeted revenue increases in Publishing and Membership based on specific new products and strategies  New businesses and revenue sources i.e. increased offering of Continuing Education units and new research publication series

7. Key 2010 Budgetary Assumptions (con’t)  Revenue estimates are data driven based on the best available ground level information from managers – all revenue estimates are conservative  Built on cost reductions established in FY2009 - $470,000 savings through 9.6 FTE eliminated positions - $205,000 savings though 4.3 unfilled FTE’s - $100,000 savings on Handbook production, security and postage

8. Key 2010 Budgetary Assumptions (con’t)  Includes capital funding for technology, building and improvements of $2,155,041  Given the current economic uncertainty $305,000 in spending will be put on hold pending a full review in the fall i.e. priority staffing and 1% staff compensation  New business development budget of $50,000

9. Programmatic Initiatives and Highlights  Annual Conference, Midwinter Meeting and PLA & AASL national conferences  A new division with the combination of ALTA and FOLUSA – ALTAFF  ALA Connect fully operational and Phase 2 launched  Online Guide to Reference fully operational  Moving toward greater virtual conference participation

10. Programmatic Initiatives and Highlights (con’t)  Office space purchased in Middletown, CT for CHOICE magazine  A new support staff certification program  New preservation awareness week  New advocacy initiatives at all levels with ALA’s Capwiz software available for use by all 50 chapters  A national conversation on privacy led by OIF  Relocating staff offices to the 7 th floor

11. Programmatic Initiatives and Highlights (con’t)  A Spectrum Scholarship Presidential Initiative to raise one million dollars  Work on a new Young Adult Services certification program  First steps in the development of ALA diversity training, certification and self-assessment tools  Continuation of the “En Tu Biblioteca” and launching of the parent and children national media campaigns

12.  World-wide recession has forced all economic entities to dramatically modify spending in the face of reduced revenue projections  GDP expected to contract by 2%  Unemployment expected to surpass 9.5% by year end and over 10.0% first quarter 2010  Despite the economic condition library usage is up across the nation Environmental Uncertainty

13.  FY 2010 revenue assumptions are conservative  FY 2010 revenue depends on - New product development - Product enhancement - Marketing current intellectual property - Location of meetings - Annualized impacts of rate and pricing increases  FY 2010 Downward expense adjustments based on: - Changes in current business models - Technology use - Operating efficiencies  FY 2010 cost cutting are concentrated on maintaining member services Impact on ALA Planning

14.  Continued budget placeholder ($50,000) for potential growth opportunities  ALA Editions will introduce a new series: ALA Classic, handbooks, guide for the public library and reference titles  Offering IACET – approved credit equivalent units coordinated by HRDR in conjunction with other units  Offering Web CE – Lawyers for Libraries by OIF Strategy for Business Development

15.  In-sourcing meeting registration for chapters and affiliates  ALA-APA will implement the library support staff certification program  YALSA will launch its online research journal  American Libraries will develop a magazine for the public  ORS will launch its research data sets to showcase library issues and trends Strategy for Business Development (con’t)

16. 2010 Budget Implementation

17. Total ALA FY 2010 Budgetary Ceiling + Net Assets (Unexpended balance remaining from FY 2009) Budgetary Ceiling = Revenue (Anticipated for FY 2010) See Article IX, page 29 of ALA Handbook

18. FY 2010 Total Budgetary Ceiling By Fund $64,511,882 OPERATING FUND $55,699,549 PLANT FUND $0 GRANTS & AWARDS $8,195,537 LONG TERM INVESTMENTS $616,796 General Fund $28,313,585 Divisions $26,239,084 Round Tables $1,146,880 Headquarters Building Huron Plaza & WO Operating Furniture & Equipment Awards Unrestricted Temporarily Restricted Permanently Restricted Huron Plaza Building TOTAL ALA OPERATIONS $55,699,549 Capital Budget $2,155,041 Grants Technology $1,407,950 Furn/Equip & Building $497,091

19. FY 2010 Total Revenues By Fund $55,176,678 OPERATING FUND $45,696,460 PLANT FUND $0 GRANTS & AWARDS $8,195,537 LONG TERM INVESTMENTS $1,284,681 General Fund $28,313,585 Divisions $17,026,870 Round Tables $356,005 Headquarters Building Huron Plaza & WO Operating Furniture & Equipment Awards Unrestricted Temporarily Restricted Permanently Restricted Huron Plaza Building TOTAL ALA OPERATIONS $45,696,460 Capital Budget $2,155,041 Grants Technology $1,407,950 Furn/Equip & Building $497,091

20. General Fund Net Asset Balance History *Projected

21. General Fund Net Assets (Available for Operations) Net Assets Net Asset Balance Beginning of FY09 $2,796,370 Less Bd. Designated Reserve - $972,645 Adjusted Net Assets Beginning of FY09 $1,823,725 FY 09 - 2010 Projects ($200,000) FY 09 – Projected use for 2010 Projects ($441,500) Net Assets @ End of FY09 $1,182,225 Plus Bd. Designated Reserve + $972,645 Net Assets @ End of FY09 $2,154,870

22. General Fund Revenues/Expenses 2008 - 2010 Revenues Expenses Unallocated Expenses Net Revenue 2009 Budget 2008 Actual $30,064,112 $30,064,112 $ 0 $28,026,732 $27,346,587 $ 0 $ 680,145 2010 Proposed $28,313,585 $28,008,585 $ 305,000 $ 0

23. General Fund Revenue Summary 2008 –2011 (Financial Plan) *Actual **Budgeted ***Proposed ****Projection

24. General Fund Revenue 2008 – 2011 (Financial Plan) *Actual **Budgeted ***Proposed ****Projection

25. General Fund Expenses 2008 – 2011 (Financial Plan) *Actual **Budgeted ***Proposed ****Projection

26. Bridge to Budgeted FY 2010 Revenues Revenue Projection 1 st Qtr 2009 $27,269,591 Publishing $564,991 Conferences $218,079 Dues $335,142 Other* ($ 74,218) Revenue Adjustment $ 1,043,994 Proposed FY 2010 Revenue $28,313,585 *Primarily lower interest income Subsequent Revenue Adjustments

27. FY 2010 Expense Reductions 9.6 FTE’s $470,000 Operating Expenses $100,000 Additional Overhead Recovery $525,000 Total $1,095,000

28. Salary Decision Impacts FY 2008FY 2009FY 2010 Salaries $ 10,866,960 $ 12,621,104 $ 11,933,342 Budgeted FTE's 213.5 203.9 Budgeted Unfunded FTE's Accounting 0.4 Accounting 0.5 1.0 Library 0.5 OIF 0.50.4 OA 001.0 Comm-AED 001.0 Pub-AED 0.10 0 Total 2.01.84.3

29. Division Revenues and Expenses 2008 - 2010 Revenues Expenses Net Revenue 2009 Budget 2008 Actual $14,317,526 $16,418,548 ($2,101,022) $16,008,255 $14,444,106 $ 1,564,149 2010 Proposed $17,026,870 $17,030,391 ($3,521)

30. Grants and Awards Total Overhead Rate FY 2010** $ 8,195,537 $ 768,215 9.3% FY 2009* $12,255,773 $1,071,323 8.7% FY 2008 $11,529,220 $1,140,488 9.9% FY 2007 $ 5,223,524 $ 497,407 9.5% FY 2006 $ 4,031,999 $ 354,856 8.8% FY 2005 $ 3,565,625 $ 395,016 11.1% FY 2004 $ 3,322,830 $ 270,782 8.2% *Budget **Proposed

31. FY 2010 Capital Request ITTS - ALA WIDE TECHNOLOGY - GF COMPUTER RELATED - DIVISIONS GENERAL FURNITURE & EQUIP. BUILDING IMPROVEMENTS PUBLISHING WIP TRANSFER CONTINGENCY TOTAL CAPITAL REQUEST $251,113 $33,750 $10,518 $44,450 $30,000 $33,333 $403,164 $1,247,900 $ 160,050 $ 52,591 $ 444,500 $ 150,000 $ 100,000 $2,155,041 $125,557 $ 16,875 $ 5,259 $ 22,225 $ 15,000 $16,667 $201,583 Purchase Price Depreciation Year 1 Depreciation Year 2

32. ITTS Investment  Fiscal FY 2008 - $ 887,000  Fiscal FY 2009 - $ 824,000  Fiscal FY 2010 - $1,222,000  Fiscal FY 2011 - $1,146,000  Fiscal FY 2012 - $1,172,000 Total $5,251,000

33. HQ Building Investment Building Improvement Furn/Equip  Fiscal 2008 $503,000 $ 76,000  Fiscal 2009 $227,000 $ 40,000  Fiscal 2010 $424,000 $ 40,000  Fiscal 2011 $265,000 $ 40,000  Fiscal 2012 $530,000 $ 40,000 Total $1,949,000 $236,000

34. Thank You for Your Attention