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OFFICE OF THE LEGISLATIVE AUDITOR O L A STATE OF MINNESOTA EVALUATION REPORT Public Libraries MARCH 2010 PROGRAM EVALUATION DIVISION Centennial Building – Suite 140 658 Cedar Street – St. Paul, MN 55155 Telephone: 651-296-4708 ● Fax: 651-296-4712 E-mail: [email protected] ● Web Site: http://www.auditor.leg.state.mn.us Through Minnesota Relay: 1-800-627-3529 or 7-1-1 Program Evaluation Division Evaluation Staff The Program Evaluation Division was created James Nobles, Legislative Auditor within the Office of the Legislative Auditor (OLA) in 1975. The division’s mission, as set forth in law, Joel Alter is to determine the degree to which state agencies Emi Bennett and programs are accomplishing their goals and Valerie Bombach objectives and utilizing resources efficiently. Jody Hauer Deborah Junod Topics for evaluations are approved by the David Kirchner Legislative Audit Commission (LAC), which has Carrie Meyerhoff equal representation from the House and Senate Judith Randall and the two major political parties. However, Sarah Roberts evaluations by the office are independently KJ Starr researched by the Legislative Auditor’s professional Julie Trupke-Bastidas staff, and reports are issued without prior review by Jo Vos the commission or any other legislators. Findings, John Yunker conclusions, and recommendations do not necessarily reflect the views of the LAC or any of To obtain a copy of this document in an accessible its member s. format (electronic ASCII text, Braille, large print, or audio), please call 651-296-4708. People with A list of recent evaluations is on the last page of hearing or speech disabilities may call us through this report. A more complete list is available at Minnesota Relay by dialing 7-1-1 or 1-800-6 27-3529. OLA's web site (www.auditor.leg.state.mn.us), as are copies of evaluation reports. All OLA reports are available at our web site: http://www.auditor.leg.state.mn.us The Office of the Legislative Auditor also includes If you have comments about our work, or you want a Financial Audit Division, which annually to suggest an audit, investigation, or evaluation, conducts an audit of the state’s financial statements, please contact us at 651-296-4708 or by e-mail at an audit of federal funds administered by the state, [email protected] and approximately 40 audits of individual state agencies, boards, and commissions. The division also investigates allegations of improper actions by state officials and employees. Printed on Recycled Papeer OFFICE OF THE LEGISLATIVE AUDITOR O L A STATE OF MINNESOTA • James Nobles, Legislative Auditor March 2010 Members of the Legislative Audit Commission: Public libraries in Minnesota are primarily funded and operated by local governments, but state government is involved in ways that have a significant impact. Therefore, the commission requested an evaluation by the Office of the Legislative Auditor. We found that Minnesota uses a complex, multilayered approach for delivering public library services, with state government providing programs and financial assistance to regionally based library systems, not individual libraries. Although not free of problems, the system works reasonably well overall. Our principal recommendation related to structure is for the Legislature to eliminate multitype library cooperation systems and move their function and funding to the regional public library systems. We also found that the state’s “maintenance of effort” requirement for public libraries results in wide variations in what local governments contribute for library services. Of particular note, we found that cities which choose to operate libraries pay more than twice as much per resident as counties. However, the relationship between cities and counties in providing library services is controlled by local elected officials, and we do not make a recommendation for change in that aspect of the system. This report was researched and written by Jo Vos (evaluation manager) and Emi Bennett. We received the full support of the Minnesota Department of Education, public library organizations, and individual public libraries throughout the state. Sincerely, James Nobles Legislative Auditor Room 140 Centennial Building, 658 Cedar Street, St. Paul, Minnesota 55155-1603 • Tel: 651-296-4708 • Fax: 651-296-4712 E-mail: [email protected] • Web Site: www.auditor.leg.state.mn.us • Through Minnesota Relay: 1-800-627-3529 or 7-1-1 Table of Contents Page SUMMARY ix INTRODUCTION 1 1. BACKGROUND 3 Definition of Public Library 3 Role of Public Libraries 4 Challenges Facing Public Libraries 5 2. ORGANIZATION 11 Administering Public Libraries 11 Strengths and Weaknesses 26 Role of State Library Services 32 3. REVENUES AND EXPENDITURES 37 Total Operating Revenues 37 Total Operating Expenditures 52 4. SERVICES 57 Resident Access 57 Library Use 60 National Comparisons 62 Conclusions and Recommendations 67 LIST OF RECOMMENDATIONS 73 APPENDIX A: Characteristics of Minnesota's Public Libraries, 2008 75 APPENDIX B: Public Library Access and Use by Population, 2008 79 APPENDIX C: Local Maintenance of Effort (MOE) Requirements, 2008 81 AGENCY RESPONSE 87 RECENT PROGRAM EVALUATIONS 89 List of Tables and Figures Tables Page 1.1 Public Library Directors' Ratings of Problems Their Libraries Are Currently Facing 8 1.2 Changes Public Library Directors Have Made or Will Make to Manage Their Budgets 9 2.1 Public Library System Governance Models in Minnesota, 2008 12 2.2 Minnesota Regional Public Library Systems, 2008 18 2.3 Minnesota Multitype Library Cooperation Systems, Fiscal Year 2009 22 2.4 State Services Provided to Regional Public Library Systems, 2009 25 2.5 State Library Services’ Mission Statement, 2009 33 3.1 Total Operating Revenue by Regional Public Library System, 2008 39 3.2 Total Operating Revenue for Public Libraries, 2002-2008 40 3.3 City and County Maintenance of Effort Requirements by Regional Public Library System, 2008 46 3.4 How Local Governments’ Maintenance of Effort Requirements Were Determined, 2008 47 3.5 Number of Counties at the State Minimum Maintenance of Effort, 1994-2008 48 3.6 State Appropriations for Public Libraries, 2008 51 3.7 Percentage of Public Libraries Receiving Revenue from Nongovernment Sources, 2009 52 3.8 Total Operating Expenditures by Regional Public Library System, 2002-2008 53 3.9 Operating Expenditures per Capita by Regional Public Library System, 2008 54 3.10 Public Library Operating Revenues and Expenditures per Capita by Population, 2008 55 4.1 Resident Access to Public Libraries by Regional Public Library System, 2008 58 4.2 Resident Access to Public Libraries, 2002-2008 60 4.3 Public Library Use by Regional Public Library System, 2008 61 4.4 Public Library Use, 2002-2008 62 4.5 Public Library Characteristics by State, 2007 65 Figures 2.1 A Map of Minnesota’s Public Library Buildings, 2009 13 2.2 A Map of Minnesota's Regional Public Library Systems, 2009 17 2.3 A Map of Minnesota’s Multitype Library Cooperation Systems, 2009 21 3.1 Sources of Public Library Revenue, 2008 38 Summary Major Findings: Multitype library cooperation systems have had little positive effect on public libraries. (p. 31) Minnesota uses a complex, multilayered approach to deliver Federated regional library systems, public library services, with local where counties and cities operate governments primarily responsible area libraries themselves, spent for funding and administering about 56 percent more per resident public libraries. (p. 11) than consolidated systems, where the regional system operates one Public libraries State government plays an library for the entire area. (p. 54) are a local important “behind-the-scenes” role government by providing programs and But federated systems offered financial assistance to regionally service, but state residents more library resources based library systems, not mandates have and were more heavily used in individual libraries. (p. 23) significant 2008. (pp. 57, 60) impact. In 2008, 138 counties, cities, and regional entities operated 135 Recommendation: public libraries with 359 buildings at a cost of $202 million. (pp. 12, To reduce duplication and enhance 53) coordination, the Legislature should eliminate multitype library State law requires counties and all cooperation systems and move cities choosing to operate a public their function and funding to the library to maintain a minimum regional public library systems. level of funding for library (p. 68) services, and most library revenue—84 percent in 2008— comes from local governments. (pp. 37, 40) Cities that choose to operate libraries were required to pay more than twice as much per resident for library services than counties in 2008. (p. 45) Although they vary widely in terms of services, regional public library systems have generally been effective in allowing libraries to share resources and expand services. (p. 27) x PUBLIC LIBRARIES Report Summary libraries themselves, contracting with cities that operate libraries, or Minnesota residents have had access obtaining library services through a to public library services for well regional entity. Counties and all over 100 years, beginning when cities that operate a public library Zumbrota and Faribault established must provide at least a minimum the state's first public libraries in level of funding for library services. 1879. Since then, public libraries This amount varies widely among have evolved from simply buildings local governments and is based on people visit to check out books to either their tax capacity or population virtual environments that allow users (whichever is less) or, for those to access library materials worldwide counties and cities paying above this from home, office, and school amount, what they spent for library computers 24 hours a day. operating expenses in previous years. Public libraries serve many roles, Any city or county can establish and both within and beyond the operate a public library, and three or communities where they are located. more counties can band together to They give all residents, regardless of operate a regional library.