[PL-Directors] 30% General Fund Reduction Scenario for 2009-11

[Jim Scheppke]

Dear Directors:
As you know, the State of Oregon is facing an enormous problem in being able
to balance the state budget in the upcoming 2009-11 biennium. The State
Library has already had our budget hearing, but no decisions on our budget
have been made. On May 15th, the State Economist will release his latest
revenue forecast.  The Ways and Means Committee of the Legislature is trying
to prepare for the worst while they await the May forecast. On March 13th
the Legislative Fiscal Office requested all agencies to submit plans to
reduce the portion of their base budgets funded by the General Fund by 30%.
 
The State Library¹s base budget proposal for the 2009-11 biennium includes
General Funds totaling $3,493,861. Included in that is $1,531,331 for the
Ready to Read Grant program, an amount equivalent to $1 per child per year.
Also included is $1,423,977 for Talking Book and Braille Services (TBABS).
The remaining General Funds pay for one staff position in Library
Development and a portion of staff costs in Library Administration.
 
A 30% reduction to the base budget funded by the General Fund in 2009-11
would total $1,048,158. In the plan proposed by the State Library, the first
$83,890 reduction would be made by shifting one staff position in Talking
Book and Braille Services from General Funds to Other Funds, using
accumulated interest from the TBABS Endowment Fund to fund this position in
both years of the biennium. The remaining $964,268 reduction would be made
by reducing funding for the Ready to Read Grant program by 63%, to 597,063,
equivalent to 37¢ per child per year.
 
This plan, which was due in the Legislative Fiscal Office on March 27th, is
subject to approval by the State Library Board of Trustees at their meeting
on April 20th.
 
It is important for you to understand that this plan constitutes a
³worst-case scenario² at this point. Our plan, along with plans from all
other state agencies that have General Funds as part of their budgets have
been posted on the Legislature¹s website
(http://www.leg.state.or.us/comm/lfo/). The Ways and Means Committee is
planning a series of hearings around the state in late April to take public
input on the agency reduction plans. I encourage you to attend one of these
meetings if you are concerned about reductions to the Ready to Read Grant
Program.
 
Attached to this email is a spreadsheet we have prepared that estimates
every public library¹s Ready to Read Grant for the upcoming 2009-10 fiscal
year.  There are two tabs on the spreadsheet, one for the current level
funding of $1 per child per year and one for the ³worst-case scenario²
funding at 37¢ per child per year.
 
I have also attached an FAQ about this that hopefully will answer some of
your questions. I hope you will consult the spreadsheet and the FAQ.  If you
still have questions, please feel free to call or email me. --> Jim

Jim Scheppke, State Librarian
Oregon State Library
250 Winter St. NE
Salem, OR 97301
503-378-4367
(fax) 503-585-8059
jim.b.scheppke at state.or.us



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