1. ALLOCATING THE LIBRARY MATERIALS BUDGET Lois Schultz November 11, 2002

2. The library is just like the family. There needs to be some guidelines. In Libraries these guidelines are often called formulas.

3. 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

4. Groups of Variables 1.Departmental 2.Publication 3.Library use 4.Other

5. 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

6. Publications Variables Cost of materials –Serials –Books Number of items published

7. Library Use Circulation of items in the collection Interlibrary loan requests Library research orientation of the field Faculty publications

8. Other Variables New Programs New faculty Programs of distinction Accreditation Historical allocation Historical collection development

9. Little consistency in which variables are used.

10. The goal is to have a balanced collection.

11. “ 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.

12. Steely Library’s History

13. Climate Ripe for Change or Review New Associate Provost for Library Services 56% of libraries surveyed changed formula every five years Have more faculty input

14. LIBRARY MATERIALS BUDGET ADVISORY COMMITTEE ESTBLISHED IN 2002

15. Library Materials Budget Formula April 22, 2002 By Fred Beasley Tom Heard Don Kelm Lois Schultz

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

17. “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.

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

19. Variables We Chose Courses –Lower Division –Upper Division Credit Hours Cost of Materials –Books –Serials

20. 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 10%.

21. 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.

22. BUDGET

23. Cost of Books

24. Cost of Serials

25. Books and Periodicals Compared to Consumer Price Index

26. CONSUMER PRICE INDEX

27. 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

28. Problem Budget static or shrinking Serials cost increasing at a significantly higher rate than the consumer price index.

29. Result for 2002/2003 Serials off the top Formula to allocate the remainder

30. Future Prediction

31. WANTED Input on how to solve the problem