The Library Dividend Technical Report

A study of the socio-economic value of Queensland public libraries An independent report by SGS Economics and Planning for State Library of Queensland Project Team

This report has been prepared by: Case Study Workgroup

SGS Economics and Planning Pty Ltd State Library of Queensland wishes to acknowledge the ACN 007 437 729 generous contributions to this study made by the public library services from the following seven Local Governments: Level 1, 76 McLachlan Street FORTITUDE VALLEY 4006 ~~ Brisbane City Council ~~ Fraser Coast Regional Council P: + 61 7 3124 9026 F: + 61 73124 9031 ~~ Goondiwindi Regional Council

E: [email protected] ~~ Mackay Regional Council W: www.sgsep.com.au ~~ Mount Isa City Council

Offices in Brisbane, Canberra, Hobart, Melbourne, Sydney ~~ Paroo Shire Council ~~ Sunshine Coast Regional Council

Images

With thanks to Bundaberg Regional Council, Brisbane City Council, Central Highlands Regional Council, Fraser Published in September 2012 by State Library of Queensland. Coast Regional Council, Goondiwindi Regional Council, Hinchinbrook Shire This document has been prepared in good faith on the basis of Council, Isaac Regional Council, Mackay information collected specifically for this research study and as Regional Council, Moreton Bay Regional available in 2011 during the period the research was undertaken. Council, Mount Isa City Council, Northern Peninsular Area Regional Council, Paroo This Technical Report is available on the State Library of Shire Council, Sunshine Coast Regional Queensland website: www.slq.qld.gov.au Council and State Library of Queensland. For more information contact:

State Library of Queensland P: 07 3842 9056 E: [email protected] W: www.slq.qld.gov.au

© State Library of Queensland 2012

State Library of Queensland acknowledges that this report is based on a concept developed by the State Library of Victoria, and the publication Dollars, Sense and Public Libraries (2011).

ISBN 978-0-646-58639-7

Design and Layout Superscript Design and State Library of Queensland [BACK TO CONTENTS]

The Library Dividend Technical Report

A study of the socio-economic value of Queensland public libraries An independent report by SGS Economics and Planning for State Library of Queensland

Socio-economic value of Queensland public libraries 1 Contents

EXECUTIVE SUMMARY 4 4 VALUATION TECHNIQUES AND RESULTS ELSEWHERE 28 1 INTRODUCTION 12 4.1 Techniques to Monetise Benefits 28 4.1.1 Contingency Valuation Method 28 1.1 Project Context 12 4.1.2 Financial Savings/Consumer Surplus 29 1.2 Project Objectives 13 4.1.3 Travel Cost Method 29 1.3 Project Methodology 13 1.3.1 Considerations 13 4.2 Available Evidence of Benefits 30 1.3.2 Phasing 13 4.2.1 Aggregate Direct and Indirect Uses 30 4.2.2 Direct Use Benefits: Access to Services 31 1.4 Structure of this Report 15 4.2.3 Direct Use Benefits: Specific Programs 32 4.2.4 Indirect Use Benefits 33 2 PUBLIC LIBRARY SNAPSHOT 16 4.2.5 Non-Use Benefits 34 2.1 Library Services and Facilities 17 4.3 Techniques to Estimate Induced 2.2 Collection 17 Economic Activity 34 2.3 Overall Usage 17 4.4 Available Evidence of Induced 2.4 Programs 18 Economic Activity 35 2.5 Income Sources 19 4.5 Synopsis 35 2.6 Expenditure 19 2.7 Trends in Library Usage and Provisions 19 5 DISTILLED ASSESSMENT FRAMEWORK 36 5.1 Cost Benefit Analysis 36 3 PUBLIC LIBRARY COMMUNITY 5.2 Economic Impact Analysis 38 WELFARE CONTRIBUTIONS 22 5.3 Case Study Library Services 40 3.1 Value of Public Libraries 22 5.4 Scaling the Results 41 3.2 Costs and Benefits of 5.4.1 Cost Benefit Analysis 41 Public Library Services 23 5.4.2 Economic Impact Assessment 41 3.2.1 Costs 23 3.2.2 Direct User Benefits 23 6 Survey Results 42 3.2.3 Indirect User Benefits 24 6.1 Library User Survey 42 3.2.4 Non-User Benefits 24 6.1.1 Usage Frequency 43 3.3 Economic Activity Generated 26 6.1.2 Reasons for Library Use 43 3.3.1 Economic Stimuli (Direct Impact) 26 6.1.3 Primary Activity at the Library 44 3.3.2 Economic Flow-Ons (Indirect Impact) 26 6.1.4 Length of Stay 44 3.4 Synopsis 26 6.1.5 Distance Travelled 45 6.1.6 Induced and Prompted Expenditure 45 6.1.7 Satisfaction with Library Services 45 6.1.8 Benefits of Library Services 46 6.1.9 Public Library Contributions to the Community 47 6.1.10 Best Things about Public Libraries 48 6.1.11 Suggested Improvements to Public Libraries 48 6.1.12 Estimated Financial Value of Library Services 48 6.1.13 Willingness to Pay for Library Services 49

2 The Library Dividend 6.2 Household (Non-User) Survey 50 8 Value Assessment 88 6.2.1 Perceived Benefits of Public Libraries 52 8.1 Cost Benefit Analysis 88 6.2.2 Perceived Characteristics of 8.2 Validity of Results 89 Public Libraries 52 8.3 Economic Impact Assessment 91 6.2.3 Perceived Contribution to Community Culture 53 6.2.4 Suggested Improvements to 9 Conclusions and Recommendations 92 Public Libraries 54 9.1 Conclusions 92 6.2.5 Willingness to Pay for Library Services 54 6.3 Synopsis 55 BibliogRAPHY 94 7 Case Study Results 56 Appendix 1: Library User Survey 96 Case Study Locations 96 7.1 Case Study Selection 56 Response Rates 96 7.1.1 Brisbane City Council Library Services 56 Survey Method 96 7.1.2 Sunshine Coast Regional Council Library Service 58 Survey Instrument 97 7.1.3 Fraser Coast Regional Council Online User Survey Results 103 Library Service 62 Tabulated Results 104 7.1.4 Mackay Regional Council Appendix 2: Household (Non-User) survey 166 Library Service 65 Household (Non-User) Survey Results 166 7.1.5 Mount Isa City Council Library Service 68 7.1.6 Goondiwindi Regional Council Tabulated Results 169 Library Service 70 7.1.7 Paroo Shire Council Library Service 73

7.2 Library Programs 76 7.2.1 Early, Children’s and Family Literacy 76 7.2.2 Young Adult and Youth Literacy 77 7.2.3 Adult Literacy and Training 77 7.2.4 Digital Literacy 78 7.2.5 Multicultural Services and Awareness Programs 78 7.2.6 Home Library Service 79 7.2.7 Other Public Events and Learning Programs 79

7.3 Case Study Results - Cost Benefit Assessment 80 7.4 Case Study Results - Economic Impact Assessment 83 7.5 Synopsis 86 7.5.1 Common Issues 86 7.5.2 Future Advocacy Efforts 86

Socio-economic value of Queensland public libraries 3 EXECUTIVE Public Libraries in Queensland Public library services in Queensland are delivered by local SUMMARY government. Over 20 million visits to public libraries were made in 2010-2011. This equates to 4.7 visits per capita across all of Queensland. If visitation is attributed solely to library members, i.e. 45% of the Queensland population, State Library of Queensland then visitation frequency translates to approximately 10 visits (the State Library) each year per library member. commissioned this study In support of these public library services, the Queensland Government provides significant funding through the to assess the community State Library which contributes approximately $21 million welfare contributions of p.a., supporting some 341 public libraries and Indigenous Knowledge Centres across the state. the state’s public library Nonetheless, Queensland public libraries lag behind other network and the economic Australian states in terms of expenditure per capita.

impact these public Research into the socio-economic value of libraries in libraries have on their host Queensland has stemmed from the release of Expanding Horizons: Positioning Queensland Public Libraries for the regional economies. Future 2008-2012 which is currently in a review stage; however, the strategic themes are relevant beyond 2012.

Equity of access to library services is a key driver of their value within communities. Public libraries are noted for the commitment to providing library services, at no cost to the consumer, without prejudice. Queensland has a dispersed settlement pattern and is geographically very large. Therefore, equity of access is targeted through careful planning and coordination between the State Library and local government library service managers, and online services.

Project Scope & Objectives

This project follows State Library of Victoria’s Dollars, Sense and Public Libraries report, which assessed the socio- economic value of public libraries in Victoria. State Library of Queensland desired to undertake a similar analysis of Queensland public libraries, with four high-level objectives: 1. expand the understanding of the value of public libraries to the communities that they serve 2. prove that public libraries contribute economic benefit to the community 3. provide public library managers with tools for assessing the value of specific library services 4. equip public library managers with advocacy materials to ensure future funding decisions are best advocated.

This report summarises the processes used and results generated in accordance with the first two objectives. That is, this report documents the value of public libraries to the Queensland community, building on a review of methods and results generated both nationally and internationally, plus significant primary research undertaken as part of this project.

4 The Library Dividend Recommendations under objectives 2, 3 and 4 are made, ~~ public library contribution to literacy (including however, the tools and advocacy materials themselves are digital literacy) provided separately. It should be noted that this research is ~~ public library facilitation of improved education, based on physical buildings and collections and does not career development and health outcomes. investigate services delivered online. Non-users of public libraries also gain benefits from public library services. These include the value non-users place on Assessing how Libraries contribute to having the option to use public libraries in future, as well as the Community the value of knowing that public libraries exist for others to use, both now and in future. The first phase of research undertaken as part of this project Measuring the benefits of public libraries is not as was to review similar studies elsewhere and establish a clear straightforward as measuring costs, because the benefits framework for estimating the value of public libraries. This are enjoyed by both users and non-users, and are not research has highlighted that while not applied universally in traded in the marketplace as they are largely provided free previous studies, there are two forms of analysis that help us of charge. Consequently, market prices do not exist. To estimate the value of public libraries. overcome this issue, this project has used a combination 1. The net contribution public libraries make to community of three non-market valuation techniques, which overlap in welfare. This contribution is measured via a cost some cases, but which will provide alternative estimates of benefit assessment (CBA) framework, which benefit for the sake of comparison: considers the economic, social and environmental costs ~~ financial savings– this method values the services and benefits associated with public library services, offered by public libraries by asking users to estimate the enabling an estimate of net benefit to be derived costs they would incur if similar services were provided 2. The economic activity induced in the regional economy by substitute, private sector providers by public library operations. This activity is measured by ~~ travel costs – this method estimates the value of time, an economic impact assessment (EIA) framework, cost and effort that library users incur in getting to and which identifies the stimuli that public libraries introduce in using public library services. In essence this method into regional economies through their expenditure assumes that the value derived by users must outweigh profiles, and traces how these stimuli culminate in the costs incurred, otherwise users wouldn’t make economic activity in buyer and supplier industries the visit through successive rounds of economic transactions. ~~ contingency valuation – this method asks library The results of these assessment frameworks are not users and non-users how much they would be willing to cumulative, i.e. they cannot be added together. They answer pay to keep the public library services on offer in their two different questions, with the CBA telling us if libraries are respective communities. good value investments, and the EIA telling us how much regional economic activity libraries generate. The CBA framework is summarised in Figure A.

This project has undertaken significant primary research Cost Benefit Assessment Framework to populate this framework. This has included a survey of Queensland public library non-users (1,102 respondents), and The costs of public libraries are clearly defined and available surveys at seven case study public library services across via their recurrent capital and operating costs. This Queensland (4,926 users). Site visits and interviews were also information is readily available from the annual Statistical undertaken to help interpret these case study based findings. Bulletin published by the State Library.

The benefits of public libraries are wide ranging and encompass the value delivered to library users directly and indirectly including: ~~ the services and programs made available to users by public libraries ~~ the social interaction facilitated in public libraries ~~ the sense of place and enhanced local amenity afforded by public libraries ~~ environmental savings generated through continued re-use of library collections

Socio-economic value of Queensland public libraries 5

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LEGACY LEGACY

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Services and Programs and Services Benefits Benefits Measurement technique Measurement

Recurrent operating costs: expenditure on library materials, staff costs and other administration costs administration other and costs staff materials, library on expenditure costs: operating Recurrent Actual costs Actual

Recurrent capital works to library buildings library to works capital Recurrent Depreciation allowances Depreciation COSTS

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Cost Benefit Assessment Framework Assessment Benefit Cost

Figure A: A: Figure The Library Dividend

EXECUTIVE SUMMARY 6 Economic Impact Assessment Framework “The range of materials, the comfortable surroundings and the friendliness and The EIA framework is relatively simple when compared to the CBA framework. It defines the stimulus that public helpfulness of staff.” libraries bring to their regional economies and traces how this stimulus flows through to other enterprises in the regional economy via multiple rounds of transactions. “I love the mix of people it attracts all ages from all walks of life; I love that it Public libraries stimulate their regional economies through their recurrent capital and operating expenditures, as promotes community.” well as library user spending that is triggered by their use of public library services. This information has been “The quality of public libraries is an gathered from the Statistical Bulletin plus the surveys of case study library users mentioned earlier. indication of the well-being of society.”

To trace how this stimulus flows through regional economies, this project has: “The library is an amazing place to ~~ developed case study area specificeconometric go, staff are always friendly, and the models (input-output), which enable industry specific atmosphere makes me feel at home. I can income, value added and employment multipliers to be read a book and before I know it 2 hours generated for each library service have passed. I like libraries.” ~~ applied these multipliers to the regional economic stimulus provided by public library services.

By summing the operation of these multipliers, this project “We moved from overseas with very little has linked the total amount of economic activity, in terms of and the library was fantastic, both for case study area income, value added and employment, that resources and helping us integrate into is linked to the public library services in question. the community.”

Survey Material “It’s really convenient and easy to use. Two separate survey mechanisms were utilised during It’s a FANTASTIC service.” the data collection. These surveys captured information from both library users and non-users. The library user survey collected information related to usage practices and “I live a long way out of town so it is also estimated economic values from those that utilise library a good mutual place to meet.” services. The non-user survey collected information relating to library awareness and perceived value and benefits. Information that was collected was used to inform both the “Libraries have been an important part of CBA and EIA analysis of economic value. both my education and my life”

“Libraries. Wouldn’t be without them!”

“Libraries act as a hub where community members can come together not only for social activities but to pursue personal interests and continue on their path of lifelong learning.”

“The library is a place where all people can go and have access to resources and be treated the same”

Socio-economic value of Queensland public libraries 7 Mackay Regional Council Library Council Regional ServiceMackay Library Service Council Regional Coast Fraser Mount Isa Regional Council Library Service Library Regional Council Goondiwindi Service Paroo Shire Council Library Service. each to attributable messages standout some case study how the estimated value benefits of compares with library service delivery costs (via the benefit cost ratio (BCR)) under each the of three benefit estimation utilised methods value income, economic regional of amount total the added and employment that is attributable library to services in their respective catchments local (i.e. areas). government contributing enjoyable to and meaningful pastimes, interests hobbies and learning lifelong supporting courses and educational community belonging. of sense a fostering Library ServiceCity Council Brisbane Library Service Council Regional Coast Sunshine $32 per public community year access maintain to to ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ The aim this of process develop was to baseline profilesof the different types regions of across Queensland. Interviews with managers the of case study library services reiterated much what of was established through the user showed also They surveys. (non-user) household and how different library services contribute differently their to respective communities, reflecting the importanceof context. Figure B provides a summary findings of including: The value public of libraries community to members is also with survey, (non-user) household the clearly established by respondents stating they were willing pay an to average of library services. said also people (non-users) most that noted be should It that libraries were worth more than they nominated, but this was all they could afford pay. to Case Study Findings Case Study Seven different library services across Queensland were investigated as part the of case study process. These library services included: attend a program, event or activity internet accessing the using reference materials making reference enquiries computers. using reading, watching or listening library to materials ------supporting education children’s and early development elsewhere available not information obtain people helping Borrowing was the predominant activity at the library. printed or books borrowed respondents of 96% borrowedmaterials CDs, DVDs or video and 61% during their visits. Importantly, a wide variety other of activities are also carried out within the library including: Most users visited the library regularly with of 33% respondents using it weekly and respondents of 29% using it fortnightly ------$52 per year maintain to community access library to ~ ~ ~ ~ pay. ~ ~ ~ ~ The Library Dividend Queensland Household Survey public of The Queensland (non-users survey household responses.libraries) received 1,102 community the that highlights survey The household acknowledges that public libraries contribute in many ways, as: such The survey library of users completed users 4,926 across by the seven case study library services tells us: Library User Survey Library In terms personal of experience, library services have helped hobbies supporting meaningful with pastimes, most users information Finding learning. lifelong and interests, and and tasks/goals accomplishing elsewhere, available not fostering community/ belonging also featured significantly. a broaderFrom community perspective, users believed libraries make very important contributions as safe and pleasant places visit: to and facilitating by lifelong learning; encouraging and everyone; access for internet providing behaviour. social responsible Library users estimated they would have spend had to an average of $394 per year accessto library services from private businesses. This is a significant recorded saving. Library users stated they were willing pay an to average of services. Most people said that libraries were worth more than they nominated, but this was all they could afford to is spent library by On average, $1.24 users per trip access to public library services in Queensland (according travel to cost estimates). This figure accountsfor multi-stop trips as part a visit of the library. to

EXECUTIVE SUMMARY 8 Figure B: Case Study Synopsis Annual Cost Annual Benefit ($ million) Annual Economic Activity supported ($ million) in Regional Economy Standout Message Financial Travel Cost Contingent Income ($ Value Added Employment Savings Method Valuation million) ($ million) (EFT) Brisbane City Council Library Service $49.6 $256.7 $103.6 $55.5 $165.4 $75.5 772 jobs BCR = 5.13 BCR = BCR = 1.11 ~~ Embracing emerging technologies and changing community expectations, while 2.07 building on the strengths of a local and community-focused service. Sunshine Coast Regional Council Library Service $14.7 $49.7 $33.4 $11 $31.1 $17.1 182 jobs BCR = BCR = BCR = 0.74 ~~ Focus is on providing education and training opportunities for adults. Contributing 3.35 2.26 to increasing the employment capacity of the community while also delivering other library services. Mackay Regional Council Library Service $3.7 $20.4 $9.5 $4.4 $8.4 $4.1 59 jobs BCR = BCR = BCR = 1.18 ~~ Impacts of the resource industry are mitigated through innovative approaches to 5.44 2.54 membership and programming. Fraser Coast Regional Council Library Service $2.7 $15.5 $6.1 $3.3 $5.9 $3.1 41 jobs BCR = 5.7 BCR = BCR = ~~ Co-location opportunities with multiple community facilities may enhance service 2.24 1.22 delivery outcomes. Mount Isa Regional Council Library Service $0.7 $6.4 $1.5 $1.1 $1.5 $0.3 13 jobs

Socio-economic valueofQueensland public libraries BCR = BCR = 2.13 BCR = ~~ Key entry point into the town catering for a high level of transient workers and 9.27 1.67 families. ~~ Programs and services cater to many socially isolated community members. Goondiwindi Regional Council Library Service $0.3 $2.6 $0.7 $0.5 $1.0 $0.5 7 jobs BCR = BCR = BCR = ~~ Delivery service ensures that the whole community has access to library resources. 4.59 1.23 0.91 ~~ Better utilisation of technology would improve efficiency. ~~ Providing innovative approaches to programming. Paroo Shire Council Library Service $0.2 $0.7 $0.3 $0.1 $0.3 $0.1 6 jobs BCR = BCR = BCR = ~~ Libraries play an increasingly strong role in the community in times of crisis. Need to 2.79 1.27 0.39 attract more users and promote the library more within the Council. Notes: BCR means Benefit Cost Ratio 9 . Put another way, for. Put each another dollar way, (State Library Victoria, of The 2009), Value households. Product) user willingness were applied pay, to across all 3,135 full-time equivalent Queensland3,135 jobs. $614 million in Queensland$614 income $295 million in Queensland value added Gross (or State the dollar value estimates generated the by contingency valuation, financial savings and travel cost methods, measured in the case study user surveys, were applied broaderto user numbers libraries of bearing similar characteristics the chosen to case study libraries the state-widenon-user survey results, the i.e. non- Queensland ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ From thisFrom assessment, it is estimated that Queensland public libraries contribute at least million $207 and up to $849 million, community to welfare each year depending on the benefit quantification method adopted. The financial savings method generated the greatest estimate benefit. of This meets with expectations, as the travel cost method fails include to all elements consumers of surplus, and the contingent valuation method may well be constrained respondentby capacity income). As pay (i.e. no to quantification method is clearly superiorto theothers, an average million estimate $478 is of considered a sound and conservative estimate annual of benefit. Importantly, when considered in relation the annual to provisioning million, costs $207 of the benefit cost ratio ranges from up 1.0 to 4.1 Queenslanders Queensland libraries, on expended public stand benefit to potentiallyfourto up times that amount. An average benefit cost ratio of 2.3 is considered purposes. communication for suitable Comparative analysis these of results with earlier studies Dollars, including elsewhere, commissioned Sense and Libraries Public Publicof libraries in (Liddle, NSW 2008) and Measuring the Economic Impact the of British Library (Pung et al, 2004), indicate that the results generated fall within a reasonable range. In particular, the results generated using the financial studies. other with consistent highly is approach savings Economic Impact Assessment If the economic stimuli associated with Queensland public libraries own expenditure (i.e. plus triggered user Queensland the throughout traced are expenditure) iteconomy, is estimated that the following level economic of activity is supported each year: agenda service technologies the recurrent costs all of public library services were publications existing from sourced these publications were used assess to use types and frequencies facility/program key by type for each library maximising the visibility and promotion libraries of building distinctive accessible highly locations, through structures and co-location libraries of with other community services, in a community i.e. hub or as a service community location. one-stop ensuring that advocacy materials are written in lay terms but are backed the by rigour that is expected in formal business cases informed decisions are operating and funding ensuring internationalby best practice and contemporary the from debate future disconnecting thinking, past the of assumptions library managers promoting the broader value and services delivered through libraries educating by sources funding other and councillors councils, alternative library pursuing and managers recognising opportunities revenue library service council recognised across being well library managers keeping abreast the of broader council ensuring the attraction and retention qualified of staff promotion each of library service is needed ensure to the community is aware the of extent services of offered theby library. the insufficiencyof fundingto cope with the changing and diverse needs each of community community rising expectations managing the need keep to abreast changing of technologies and train to staff use to and actively engage with these ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ From a futureFrom advocacy perspective, the case study interviews suggest significantvalue in: The Library Dividend Queensland Findings Cost Benefit Assessment The case study results were scaled a Queensland to level enableto an annual net dollar benefitfor the Queensland community do be this: generated. to To Some the of common issues highlighted the by case study libraries include:

EXECUTIVE SUMMARY 10 Summary Recommendations

As evidenced by consultation with library service managers Given the findings outlined above, the following and council representatives, library stakeholders are recommendations are provided. well equipped to qualitatively articulate the community ~~ This report should be distributed widely to contributions and benefits made by Queensland public Queenslanders both in a way that can be libraries. However, when it comes to quantifying these comprehended by lay people, and in a manner suitable benefits, little information has existed to date within the for the consumption of funding decision-makers at all Queensland context. The study undertaken by State Library levels of government and private enterprises, including of Victoria provided a proven method of quantifying these digital access benefits, which was applied to the Queensland context in this project. ~~ Each library service across Queensland should be equipped with the results and instructed on how to This project reiterated findings from the Victorian study, use these results to estimate their own contributions to which found that like Victorian libraries, Queensland public community welfare libraries contribute significantly to community welfare. Indeed, the benefits contributed by public libraries ~~ When communicating the findings of this report, the outweigh their provisioning costs by a factor of 2.3. contributions that align with Commonwealth and This represents a sound return on community investment Queensland policy objectives should be highlighted. This and provides a compelling case for continued investment. includes the contributions of public libraries to: -- community literacy and numeracy Importantly, these numbers have been generated using conventions and disciplines that align with the requirements -- digital literacy of Commonwealth and State Treasury guidelines for -- children, youth and young adult learning conducting cost benefit assessments. Moreover, the data -- self-organised and lifelong learning used to populate the CBA framework were derived from representative market samples. Therefore the results are -- recreational objectives of members of communities both robust and defendable. Indeed the results may well ~~ This report should be reviewed frequently and be somewhat conservative, as the benefit measurement consistently to ensure the economic value of techniques used are unlikely to fully capture the value of the Queensland public library services are estimated ‘online’ presence of public libraries. accurately. This process should include ongoing training and support to library staff at both the State and local This study has also found that the economic activity induced level to ensure that advocacy efforts can be sustained in by Queensland public libraries in Queensland is significant the long term after accounting for all of the multiple rounds of transactions induced by library related expenditures. In short, public ~~ Focus should be maintained on ensuring that remote libraries contribute approximately $295 million to library services receive adequate funding and support Queensland Gross State Product and support 3,135 to continue delivering services. This includes particular full time equivalent jobs each year. support for ‘non recorded’ service aspects such as personalised deliveries to residents and other actions The market research undertaken as part of this project that staff undertake that are ‘above and beyond’ has found that Queenslanders, be they users or standard service lines. These actions by staff generate non-users of public library services, appreciate the increased appreciation and value of library services contributions made by public libraries, with users within communities, particularly for those disadvantaged obviously better acquainted with the diversity of potential members of the Queensland community. library benefits. In line with this, Queenslanders are generally satisfied with Queensland public library services and their suggestions for improvement relate primarily to the expansion of existing services including the collection, internet access, technology integration and opening hours.

Socio-economic value of Queensland public libraries 11 INTRODUCTION 1.1 Project Context State Library of Queensland commissioned this study to assess the community welfare contributions of the state’s public library network and the economic impact these 1 libraries have on their host regional economies. Public library services are delivered by local government; however the State Government provides significant funding support to 69 local governments for their public library system. The State Library contributes approximately $21 million per year in funding and services to support 341 public libraries and Indigenous Knowledge Centres across the state. These library services are spread across the state both geographically and across diverse community needs. It is important that an understanding is developed with respect to the overall value of the support that the State Library provides to these regions, i.e. in terms of tangible, community and economic benefits.

Research into the socio-economic value of libraries in Queensland has stemmed from the release of Expanding Horizons: Positioning Queensland Public Libraries for the Future 2008-2012, the State Library’s vision statement for public libraries. This document is currently in a review stage; however, the strategic themes are still relevant.

In 2010-11, Queensland’s per capita funding of $41.391 is below that of South Australia ($56.27), Western Australia ($43.57), and New South Wales ($43.56). Over the five-year period 2006-2011, Queensland’s 11.6% growth in per capita library expenditure has been well below the national average of 17.00%.

Numerous studies from Australian and international jurisdictions have been undertaken seeking to place a value on public library services. This includes studies in New South Wales, Indiana, Ohio, Washington, Wisconsin and Britain. Recently, State Library of Victoria invested in a state- wide analysis of the economic benefits of public libraries, culminating in the publication of Dollars, Sense and Public Libraries - A landmark study of the socio-economic value of Victorian Public Libraries.

The Victorian study has been used as a blueprint for the Queensland study as it provides a number of specific advantages including: ~~ existing, successful methodology ~~ key learnings to be leveraged ~~ consistency across states, thus building a national approach to valuing public libraries across the country.

Libraries provide the communities in which they are located with varying social and economic benefits. It is important that these benefits are considered when strategic planning and budget allocation decisions are made in Queensland.

1This is the total of both Local Government and State Government contributions together.

12 The Library Dividend 1.2 Project Objectives 1.3 Project Methodology

The purpose of this project was to provide evidence-based 1.3.1 Considerations material that can be used for advocating for greater public library funding in Queensland. The net value of public libraries is most commonly assessed using cost benefit analysis (CBA). CBA is the preferred The overall aims for this project were to: tool of Australian governments for assessing whether a ~~ expand the understanding of the value of public proposed investment is worthwhile, or an earlier investment libraries to the communities that they serve has been worthwhile, taking into account economic, social and environmental considerations. ~~ prove that public libraries contribute economic benefit to the community Economic contributions of public libraries are measured using simulated input-output models for regional economies ~~ provide public library managers with tools for assessing which trace the direct and indirect impacts of library the value of specific library services expenditures on the income, value-added (i.e. the value of ~~ equip public library managers with advocacy materials the outputs created less the purchase of raw materials to to ensure future funding decisions are best advocated. produce them) and full-time employment generated in these local/regional economies. In achieving these aims, the project has striven to deliver on the following initial objectives: Understanding the distinct role of both these measurement frameworks is important. A CBA framework assesses the ~~ Identify ways that public libraries contribute to additional society-wide benefits generated by investing in a economic, social/cultural and environmental wellbeing particular project, in this case, investing in public libraries. using a combination of valuation methodologies On the contrary, the economic impact assessment (EIA) including economic benefit (cost benefit analysis/RIO/ framework traces the economic activity (income, value- SROI), economic value (contingent valuation method), added and employment) generated by investments made economic activity (multiplier/economic impact) by public libraries, by way of operating costs, staff salaries ~~ Identify further actions Queensland public libraries could and ongoing maintenance expenditures. Unlike CBA, an EIA take to enhance their role in economic development and does not assess the merit of investment. business growth ~~ Use best practice data collection and analysis methods 1.3.2 Phasing to measure, in a systematic and objective manner, the The approach adopted by the consulting team is broken value of these contributions, compared with the cost of down into five phases (Figure 1). The first of these was providing the service. Values should include direct and Project Inception, the aim of which was to gather, discuss indirect, tangible and intangible impacts as well as use and understand the implications of earlier work in this arena. and non-use values The second phase was Framework Design. In this phase, ~~ Report on public libraries overall, as well as on a number the consulting team developed a rigorous framework for of specific programs and library services scoping, measuring and assessing: ~~ Establish a replicable and scalable process for 1. The net contribution public libraries make to community measuring economic contribution for some library welfare. This contribution is measured via a cost services. Measures of some specific services should be benefit assessmentframework, which contrasts the replicable at the national level economic and social costs and benefits associated with ~~ Identify perceptions about libraries that are out-dated public library services over a long-term evaluation period and provide evidence to counter them 2. The economic activity induced in the regional economy ~~ Develop a Library Value Calculator – a simple by public library operations. This activity is measured by spreadsheet tool that provides a simplified cost benefit an economic impact assessment framework, which analysis for library services identifies the stimuli that public libraries introduce into regional economies through their expenditure profiles, ~~ Provide a reader-friendly report with useful summaries of and traces how these stimuli culminate in economic information that can be readily adopted in advocacy activity in buyer and supplier industries through ~~ Provide public libraries and councils with evidence that successive rounds of economic transactions. will assist in the planning, development and support of public library services.

Socio-economic value of Queensland public libraries 13 DATA COLLECTION DATA Fieldwork Analysis of results Phase 3: application

The development a library of a value i.e. calculator, simple spreadsheet tool that provides a simplified CBA and EIA for each library service across Queensland, based on the results gathered in earlier stages, as well as a qualitative content resource for library specific Presentation the findings of key of the project and how they can be used specific by library services. ~ ~ ~ ~ Phase 5 falls outside the scope this of technical report. It following: the involves REPORTING Cost benefit assessment Economic impact assessment Recommendations Draft Report on Draft Report Presentation Final Report Phase 4: RESEARCH AND RESEARCH AND FRAMEWORK DESIGN data Review public libraries’ Case study selection Finalise economic analysis framework Design fieldwork program Design confirmation Phase 2: Phase 5: CBA/EIA calculator of CBA/EIA Presentation calculator LIBRARY VALUE VALUE LIBRARY CALCULATOR services users Queensland of public library services).

progress. Phase 1: PROJECT INCEPTION Inception meeting & Reviewing existing reports data sets Finalise work program a telephone survey of Queensland households of survey telephone a (non- gathering published statistical material statistical published gathering site visits and interviews at seven case study library a survey library of users at each these of seven case locations study ~ ~ ~ ~ Figure 1: Figure Stages - Project Public Libraries in Queensland of Value Socio-Economic ~ ~ ~ ~ The Reporting the of analysis and insights gained from data collection formed Phase This 4. technical report encompasses the outcomes Phase of as it 4, details the key findingsof the CBA andEIA, wellas otheras key findings. It also makes recommendations for better advocating for public libraries in Queensland and how Phase 5 should The Library Dividend The third phase, Data Collection, included the collection of of collection the included Collection, Data phase, third The data necessary for populating the Frameworks developed in Phase Data collection 2. included: Figure 1 Figure Stages - Project of Public Libraries in Queensland Value Socio-Economic 14 1 Introduction 1.4 Structure of this Report

The remainder of this report is structured as follows:

Section 2 Profiles public library services in Section 6 Commences the summary of results of Queensland, outlining the scope and the data collection phase. It includes a form of their operations. Much of the summary of the survey of Queensland data in this section is sourced from the households, as well as a distillation of the State Library of Queensland Statistical library user survey across the case study Bulletin databases. library services. Detailed presentation of survey results has been provided in Section 3 Summarises relevant findings of previous the appendices. studies in regard to the costs, benefits and economic impacts of public libraries; Section 7 Takes a more focussed approach and the aim being to develop an exhaustive uses the content of the aforementioned list of community welfare contributions surveys, along with the case study and a framework for navigating these. site visits and interviews, to present a summary of CBA, EIA and other findings Section 4 Outlines the techniques previously for the seven library services studied. used to quantify and monetise the contributions made by public Section 8 Provides final conclusions plus libraries, as well as the results that recommendations for better advocating have been generated using these public libraries in Queensland, as well as techniques elsewhere. for the progression of Phase 5.

Section 5 Presents the refined CBA and EIA frameworks that were utilised in this project, listing the triple bottom line costs and benefits identified, as well as the economic impact stimuli isolated for public libraries in Queensland. The preferred measurement techniques and their input data techniques are identified, and these requirements are linked with specific data gathering techniques utilised in Phase 3.

Socio-economic value of Queensland public libraries 15 State Library of Queensland classifies and funds libraries PUBLIC LIBRARY services in Queensland according to two general categories: SNAPSHOT 1. Public Library Services Independent libraries are funded and fully operated by 2 local councils. They receive a cash grant from the Public Library Grant scheme according to a differential needs- In Queensland, public based weighting, of which at least 70% of the funding provided to each local government is tied to the purchase libraries are a local of ‘materials’ to support vibrant library collections, including government responsibility, evolving digital formats. Thirty-one local councils operate 252 Independent libraries (includes 17 mobile library services although they receive visiting 502 stops and 19 service points open less than six funding support from the hours per week). Queensland Government. Rural Libraries Queensland (RLQ) are libraries in rural Consistent with this and remote communities servicing local government populations below 15,000. RLQ libraries receive shelf- responsibility, State ready library materials, regularly exchanged, purchased Government grants to with pooled funds from the Public Library Grant scheme, providing improved purchasing power, collection reach and public libraries account economies of scale. The local council provides staffing, for only a relatively small physical infrastructure, and access to a library management system. Twenty-eight local councils operating 68 RLQ proportion (approximately libraries (includes five service points open less than six hours 12%) of each local per week). government’s total library 2. Indigenous Library Services

operating budget. Indigenous Knowledge Centres (IKCs) are communal hubs operated with Aboriginal and Torres Strait Island Councils that combine traditional library services, internet access with lifelong learning opportunities and provide a keeping place for recording, accessing and celebrating the two unique Indigenous cultures of Queensland. The State Library provides resources, staff training, programs, a library management system and a contribution to wages for IKC staff, while the local councils provide staff and physical infrastructure. Across Queensland, 10 local councils operate 21 Indigenous Knowledge Centres.

This report examines the first of these categories, Public Library Services, which comprise of Independent and RLQ libraries. It excludes Indigenous Knowledge Centres because of their unique nature, geographical isolation and limited access for the general public.

16 The Library Dividend 2.1 Library Services and Facilities 2.2 Collection

A total of 320 public library service points are provided in The library collection across Queensland is quite diverse Queensland, spanning over approximately 142,000 square with 7,905,707 items across all stock types. There are, metres of total floor space. In these public libraries there are on average, 1.71 printed lending stock items per capita in 2,374 computer terminals provided for users, with about Queensland public library collections. In terms of usage, 87% of these having internet access (Figure 2 about 9.18 items are loaned per capita each year. Library Facilities). Figure 4 Figure 2 Collection Library Facilities Stock Type Total Number Lending stock 7,56 9,919 Public Library service points (1) (#) 320 Serial titles 18,914

Floor space (sqm) 141,839 Newspaper titles 690 Reference (non-lending) stock 204,888 PC terminals (#) 2,374 Other non-lending stock 77,3 3 0 Internet access PC terminals (#) 2,063 Electronic Database 384 Source: SLQ Statistical Bulletin 2010-2011 1. Total service points (320) comprises 252 Independent libraries ebooks 33,582 and 68 Rural Libraries Queensland libraries. Excludes Indigenous Knowledge Centres. Total Stock 7,905,707 Source: SLQ Statistical Bulletin 2010-2011 Public libraries in Queensland are staffed by approximately 1,420 full-time equivalent (FTE) employees. There are Electronic databases, primarily for reference material or approximately 1,700 volunteers that contribute to public ebooks, are available through all of Queensland public libraries across Queensland (Figure 3 libraries. These databases include, among others, Human Resourcing). TumbleBooks, Newsbank and Australia/New Zealand Reference Centre. Figure 3 Human Resourcing 2.3 Overall Usage Number Over 20 million visits to Queensland public libraries were Staff FTE 1,420.12 made in 2010-2011 equating to 4.7 visits per capita on Volunteers 1,701 average in Queensland (Figure 5 Usage Patterns). Approximately 44.9% of Queensland Source: SLQ Statistical Bulletin 2010-2011 residents are members of a public library, and attributing the visits entirely to members results in an average of around 10 visits per year.

Figure 5 Usage Patterns

Per capita Total Visits p.a. 4.70 20,765,834

Membership (number) 0.45 1,984,545

Source: SLQ Statistical Bulletin 2010-2011 Note: Total numbers are rounded

Socio-economic value of Queensland public libraries 17 443

2,112 3,278 5,844 6,508 Hours 19,753 37,938 of programming Total annual hours

7, 259 16,697 43,281 22,395 Number 66,559 475,703 631,894 Total annual number of attendees 52 52 151 271 245 434 1,205 Number organisations with community and government and government in collaboration Programs delivered Programs delivered 354

1,094 4,027 2,840 5,086 16,834 Number 30,235 and events Total annual number of programs

Festivals) (including Harmony Day, Day, Harmony (including Programs Programs

program. Other Public Events and Learning TOTAL Multicultural Awareness Awareness Multicultural Programs Multicultural (including programs for beginning adult adult beginning for programs (including readers and lifelong learning) (not included(not targeted in L.2, at 18) to age group 13 Digital Literacy Programs Programs Literacy Digital computer, technology, (including and Internet 2.0 Web programs) Early and Family Literacy Programs school programs, reading (including sessions) story-time programs, holiday Young AdultYoung Literacy Programs Adult Literacy Programs The Library Dividend Source: 2011 SLQ Programs held in public libraries (Figure The majority 6). attracted participants approximately a total of 631,894 in 2010-2011 programsof were held for children. On average, one in every three library members in Queensland participated in a library 6 Figure Participants Conducted and Program Programs 2.4 Programs 18 2 Public Library Snapshot 2.5 Income Sources 2.7 Trends in Library Usage and Provisions

Queensland public libraries had an income of almost $194 Overall there have been significant increases in all key million in the 2010-2011 financial year. The majority of indicators of public libraries since 1969 when statistics this income was provided by councils, with less coming were first collected. These trends have been collected and from State Government sources. On a per capita basis, examined for income, expenditure, grants, membership, around $39.03 in income for Queensland public libraries loans and stock indicators. was contributed by local governments and approximately $4.00 per capita was provided by State Government grant Both total operating expenditures and State Government funding (Figure 7 Income Sources of Public Libraries). grants have increased significantly since 1969, reflecting population and economic growth. However, over this period, Figure 7 total operating expenditure has increased at a rate that Income Sources of Public Libraries greatly exceeds that of State Government grants (Figure 10). Local government contributions have increased significantly, Income and State Government grants have also increased since Total per Capita 1969 (Figure 9). Income/ contribution $172,294,896 $39.03 Total membership of Queensland public libraries has from councils increased consistently since 1969, with only a few years State Govt Grants $17,167,879 $3.89 having a decline in total membership. The proportion of the population that are members of a public library Other Grants $928,841 $0.21 has also increased, however this has levelled out since Revenue $3,365,464 $0.76 1995 (Figure 11).

Total Income $193,971,589 $43.94 Loans per capita have, on the whole, increased significantly since 1969. Trends indicate however that there has been Source: SLQ Statistical Bulletin 2010-2011 a steady decrease in loans per capita since 2001/02. In Note: Categories may not equal total due to rounding 2001/02 there was an average of 11.03 loans per capita made from Queensland public libraries. This declined to 9.68 loans per capita in 2009/10 (Figure 12). 2.6 Expenditure Total stock in Queensland public has increased significantly Public libraries spent over $203 million in 2010-2011, since 1969. Stock per capita of population has also equating to $46.20 of expenditure per capita. The majority of increased over this period, however due to the significant this spending was allocated to staff salaries and operational population increase since 2004, and the increase of costs (75.4%), with library materials expenditure making up electronic materials, the physical stock per capita has the next largest component (14.7%) (Figure 8). decreased since this time (Figure 13).

It should be noted that expenditure includes ‘depreciation’. Depreciation is a provision made to account for a reduction in the value of assets (general wear and tear) over time, for instance, library materials such as books and computers.

Figure 8 Components of Expenditure for Public Libraries

Expenditure Total per Capita Library materials $29,9 67,5 3 0 $6.79 expenditure Capital Works $20,117,191 $4.56 Staff salary and $153,862,297 $34.85 operating costs Total Expenditure $203,947,018 $46.20

Source: SLQ Statistical Bulletin 2010-11

Socio-economic value of Queensland public libraries 19 2 Figure 9 Figure 12 Figure 9 Figure 12 FigureIncome: 9 Local Government v State Government 1969-2010 Loans Income: Local Government v State Government 1969-2010 Loans Income: Local Government v State Government 1969‑2010 Public Library Snapshot Public Library Figure 9 Figure 12 Income:160,000 Local Government v State Government 1969-2010 Loans45,000,000 12.0 160,000 45,000,000 Total Loans 12.0 Local Government Total Loans 140,000 Local Government 40,000,000 140,000 40,000,000 Loans per Capita 10.0 160,000 State Government Grant 45,000,000 Loans per Capita 10.012.0 120,000 State Government Grant 35,000,000 Total Loans 120,000 Local Government 35,000,000 140,000 30,000,00040,000,000 8.0 100,000 State Government Grant 30,000,000 Loans per Capita 8.010.0 100,000 120,000 25,000,00035,000,000 80,000 25,000,000 6.0 80,000 20,000,00030,000,000 6.08.0 100,000 20,000,000 60,000 25,000,000 60,000 Total Loans 15,000,000 4.0 Expenditure ($) 80,000 Total Loans 15,000,000 4.06.0 Loans per Capita Expenditure ($) 40,000 40,000 10,000,00020,000,000 Loans per Capita 60,000 10,000,000 2.0 20,000 Total Loans 15,000,000 2.04.0 Expenditure ($) 5,000,000

20,000 Loans per Capita 40,000 5,000,000 0 10,000,0000 0.0 0 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 0 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 0.02.0 20,000 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 5,000,000 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 0 0 0.0 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

YEAR YEAR YEAR YEAR Source: SLQ Statistical Bulletin Database Figure 10 YEAR Figure 13 YEAR Figure 10 Figure 13 Expenditure and Grants, Total Operating Expenditure v State Government Grants, 1969-2010 Public Library Stock Per Capita FigureExpenditure 10 and Grants, Total Operating Expenditure v State Government Grants, 1969-2010 Public Library Stock Per Capita ExpenditureFigure 10 and Grants, Total Operating Expenditure v State Government Grants, 1969-2010 Figure 13 Expenditure160,000 and Grants, Total Operating Expenditure v State Government Grants, 1969-2010 Public10,000,000 Library Stock Per Capita 160,000 10,000,000 Total Stock Total Operating Expenditure Total Stock 140,000 Total Operating Expenditure 9,000,000 2.0 140,000 9,000,000 Stock Per Capita 2.0 160,000 State Government Grant 10,000,000 Stock Per Capita 120,000 State Government Grant 8,000,000 Total Stock 120,000 Total Operating Expenditure 8,000,000 140,000 7,000,0009,000,000 1.52.0 100,000 7,000,000 Stock Per Capita 1.5 100,000 State Government Grant 120,000 6,000,0008,000,000 80,000 6,000,000 7,000,000 1.5 100,00080,000 5,000,000 1.0 60,000 5,000,000 1.0 60,000 Total Stock 4,000,0006,000,000 Total Stock Expenditure ($) 80,000 4,000,000 Stock per Capita Expenditure ($) 40,000 1.0 40,000 3,000,0005,000,000 0.5 Stock per Capita 60,000 3,000,000 0.5 20,000 Total Stock 4,000,000

Expenditure ($) 2,000,000 40,00020,000 2,000,000 Stock per Capita 0 1,000,0003,000,000 0.00.5 20,0000 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08