American Library Association2009 Annual Conference

Chicago, IL

FY 2010 Total ALA Budget Presentation(Annual Estimate of Income & Budgetary Ceiling)

Presented By:

Rod Hersberger – ALA Treasurer July 14, 2009

2008-09 CD#13.3

2008-09 Annual Conference

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.”

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

FY 2009 General Fund Projections Budget Projections VarianceRevenue $30,064,000 $27,270,000 ($2,794,000) Publishing $13,120,000 $10,869,000 ($2,251,000) MPS $ 9,752,000 $ 9,250,000 ($ 502,000) Communications $ 6,061,000 $ 5,970,000 ($ 91,000) Other $ 1,131,000 $ 1,181,000 $ 50,000

Expenses $30,064,000 $28,894,000 $1,170,000 Publishing $12,114,000 $10,229,000 $1,885,000 MPS $12,195,000 $12,136,000 $ 59,000 Communications $ 3,231,000 $ 3,205,000 $ 26,000 Other $ 2,524,000 $ 3,324,000 ($ 800,000) Net Revenue $ 0 ($ 1,624,000) ($1,624,000)

FY 2009 General Fund Projections

Budget ProjectionsRevenue $30,064,000 $27,270,000Expenses $30,064,000 $28,894,000 Net Revenue $ 0 ($ 1,624,000) BC/BS $186,000 Unclaimed Checks $115,000 S & S Refund $196,000 Vacation Accrual $244,000 $ 741,000 Adjusted Net Revenue 1 ($ 883,000) Handbook $ 17,000 Publishing $105,000 Individual Incentive $ 75,000 Furlough Savings $ 250,000 $ 447,000

Use of Board Reserves* $ 436,000

One Time Expense Adjustments

OperatingExpense Reductions

*Up to $441,500 approved by Executive Board

2010 Budget Implementation

Bridge to FY 2010 General Fund Budgeted Revenues

Revenue Projection 2009 $27,269,591

Publishing $565,911

Conferences $218,079

Dues $335,142

Other* ($ 74,218)

Revenue Adjustment $ 1,044,914

Proposed FY 2010 Revenue $28,314,505

*Primarily lower interest income

2010 Revenue Adjustments

Bridge to FY 2010 General Fund Budgeted Expenses

Expense Projection 2009 $28,894,000

BC/BS $186,000

Unclaimed Checks $115,000

Vacation Accrual $244,000 $ 545,000

Base FY 2009 Budget Expenses $29,439,000 - FTE (9.6) Reduction ($470,000) - Unfunded FTE (5.3) ($284,000) - Operating Expenses ($100,000)

- Division Overhead ($444,000)

- Small Division Support ($ 24,000)

+ Grants Overhead $ 197,000 $ 1,125,000

Proposed FY 2010 Expenses $28,314,000

2009 Expense Adjustments

2010Expense Adjustments

Key 2010 Budgetary Assumptions

Budget reductions in state, city, county and private institutions will have a negative impact on expected ALA revenues

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

New business development budget of $50,000

Key 2010 Budgetary Assumptions (con’t)

Expectation of an additional $444,000 in GF overhead due to the PLA and AASL national conferences

Given the current economic uncertainty $337,000 in spending will be put on hold pending a full review in the fall

Built on cost reductions established in FY2009 - $470,000 savings through 9.6 FTE eliminated positions - $284,000 savings though 5.3 unfilled FTE’s - $100,000 savings on Handbook production, security and postage

Programmatic Initiatives and Highlights A new division with the combination of ALTA and FOLUSA – ALTAFF

ALA Connect fully operational and Phase 2 launched

Annual Conference, Midwinter Meeting and PLA & AASL national conferences

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

A Spectrum Scholarship Presidential Initiative to raise one million dollars

Continuation of the “En Tu Biblioteca” and launching of the parent and children national media campaigns

ALA Editions will introduce a new series: ALA Classic, handbooks, guide for the public library and reference titles

Offering Web CE

Offering IACET – approved credit equivalent units coordinated by HRDR in conjunction with other units

ORS will launch its research data sets to showcase library issues and trends

New Business Opportunities

Utilizing a newly created business development framework

Have built in a $50,000 placeholder for new business development

Will establish an advisory group of member leaders

Business Development Enhancements

FY 2010 Expense Reductions

9.6 FTE’s (eliminated) $470,000

5.3 FTE’s (unfunded) $284,000

Operating Expenses $100,000

Small Division Support $ 24,000

Additional Overhead Recovery* $247,000

Total $1,125,000

*Net of Divisions and Grants

General Fund Revenues/Expenses2008 - 2010

Revenues

Expenses

Unallocated Expenses

Net Revenue

2009 Budget

2008 Actual

$30,064,112

$30,064,112

$ 0

$ 0

$28,026,732

$27,346,587

$ 0

$ 680,145

2010 Proposed

$28,314,505

$27,977,505

$ 337,000

$ 0

FY 2010 Total Revenues By Fund$54,428,945

OPERATING FUND$44,921,111

PLANT FUND$0

GRANTS & AWARDS

$8,891,038

LONG TERM INVESTMENTS

$616,796General Fund$28,314,505

Divisions$16,250,601

Round Tables$356,005

Headquarters Building

Huron Plaza & WO

Operating

Furniture & Equipment

Awards

Unrestricted

Temporarily Restricted

Permanently Restricted

Huron Plaza Building

TOTAL ALA OPERATIONS

$44,921,111

Capital Budget$2,156,539

Grants

Technology$1,659,448

Furn/Equip & Building$497,091

FY 2010 Total Budgetary Ceiling By Fund

$64,432,034

OPERATING FUND$54,924,200

PLANT FUND$0

GRANTS & AWARDS

$8,891,038

LONG TERM INVESTMENTS

$616,796General Fund$28,314,505

Divisions$25,462,815

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

$54,924,200

Capital Budget$2,156,539

Grants

Technology$1,659,448

Furn/Equip & Building$497,091

Fiscal Year 2010 Budget- The Next Steps -

Details and Approval

Total ALA FY 2010Budgetary Ceiling

+

Net Assets (Unexpended balance remaining from FY 2009)

Budgetary Ceiling=

Revenue (Anticipated for FY 2010)

See Article IX, page 30 of ALA Handbook

Total FY 2010 ALA Budgetary Ceilings

General FundDivisionsRound TablesGrants & AwardsLong Term Investments

Total ALA FY 2010 Budgetary Ceiling

$28,314,50525,462,815

1,146,8808,891,038

616,796

$64,432,034

COUNCIL ACTION TO BE TAKEN

REQUEST OF COUNCIL

Approval of FY 2010 Budgetary Ceiling of

$64,432,034

Thank You for Your Attention