Carnegie Library Approves Funding Strategies

Recommendations by the public-private task force charged with finding sustainable funding solutions for the Carnegie Library of Pittsburgh have been approved by the Board of Trustees. The report recommends a multi-pronged approach to ensuring the stability and growth of the library. The plan also integrates recommendations made by the public during last year's Community Conversation workshops. Task Force Chair Frank Lucchino says the library's budget has been "squeezed" as much as possible, so now the Board must look at income. "We have reduced the hours of operation, we have cut the number of materials that we buy, we have reduced the staff, we have frozen salaries.... We've done everything the public has the right to expect us to do to tighten our belts, and if we're not going to close branches, we need to find funding sources that are sustainable to carry us forward." Two primary strategies will be implemented to increase income: first, protect and grow current library funding, and second, initiate new funding streams. Under the first strategy, the library will improve advocacy and increase individual giving, secure annual increases from the Allegheny County Regional Asset District, seek more corporate contributions and work with local and state entities to develop incentive programs for donors. In terms of new funding streams, the library would launch an endowment campaign and give the public a chance to vote on whether increased dedicated funding should go to the library system. Lucchino says Pittsburgh's annual contribution to the library has not increased from its original $40,000 over the library's 115 years in the city.

RAD Budget up 2%

There's an unexpected increase in the final budget approved by the Allegheny Regional Asset District Board. The $81.1 million dollar spending plan for 2011 is 2% higher than the current year's. That means an extra $900,000 for the arts organizations, libraries, parks and other entities that receive funding via the 1% sales tax in Allegheny County.
RAD officials attribute that to revenue growth between the time they issued the preliminary budget in early fall and Tuesday's final vote .
One of the beneficiaries of the additional sales tax revenues is the Carnegie Library of Pittsburgh. Originally, the library system was to receive a $352, 000 increase in funding but will now get a raise of $528,000.
Library spokeswoman Susan Thinnes says they announcement by RAD was a wonderful surprise "and a great holiday gift for the libraries. We are thankful the libraries remain a priority for RAD. While the amount will not fill the entire deficit for next year, it does help Carnegie Library get through and be able to balance the budget for 2011."

Thinnes says within the next few weeks they will issue their final report to the Carnegie Library Board on recommendations for a long term funding solution.

RAD Budget Proposed

The Allegheny Regional Asset District, or RAD, which gives unrestricted grants to institutions such as libraries, county parks, museums, sports facilities released their 2011 preliminary budget on Thursday.

The budget is a recommendation of the Allocations Committee and is subject to a public hearing before the final budget is approved later this year. The hearing will be held on Tuesday October 26th.

The proposed budget is $80.2 million with grants to 89 organizations. It is $730,000 higher than last years. The RAD budget comes from one half of the proceeds of the Allegheny County Sales and Use Tax. The tax base was higher this year, said Rad Board Chairman Robert James and they also dipped into the reserve.

Libraries will get 33 percent of the budget. Barbara Mistick, President and Director of The Carnegie Library System said the libraries are facing a deficit of 1.7 million dollars so this increase will not make up their budget. They are seeking other ways to make up the deficit as well as find a sustainable funding solution.

Parks get 31 percent of the budget, sports facilities get 18 percent, places like The Zoo, Phipps and Aviary get eight percent and arts and cultural organizations get nine percent.

Record-Setting RADical Free Admission Events Start Sept. 19

This this year's RADical Days features a record 41 free admission events to public sites, entertainment performances and activities. It's the 9th year that the Regional Asset District (RAD) has offered the public free admission to a variety of venues that receive revenues from the RAD sales tax in Allegheny County.
RADical Days 2010 begins Sunday, September 19 and concludes with a first-ever RADical Days 24-hour event October 23-24.
Executive Director David Donahue says he believes there’ll be a record attendance as well….“There’s everything ranging from free admissions at many of the museums, attractions that RAD funds, the opportunity to watch a Penguins’ practice at the new Consol Energy Center, tours of the stadiums…There’s really something for everyone and it’s a long list of assets.” He says there’ll also be entertainment events led by musical and artistic groups.
Donahue says this is RAD’s way of giving back to the community. “It’s all a thank you to the public for their support of these regional assets, both through the RAD tax as well as through their usual admission purchases during the year.”
Donahue says this is a great way to bring in people from outside the Pittsburgh area. “We appreciate the opportunity to market these assets. It’s a great time for people who may not go there normally to get a chance to see them.”
Donahue encourages people to visit assets that they may have never seen before or for years because there have been major changes made… “thanks to, in large part, help from the Regional Asset District.” He says families and community members should take advantage of these free events.

Hearings for Regional Asset District Applicants

Next week the Regional Asset District will begin the process of deciding how it will divvy up more than $85 million in sales tax receipts in the coming year. 97 organizations have submitted applications for the funds and starting Tuesday, August 24, the RAD board will hold a series of public hearings. The first will come at 3:30 on the 31st floor of the Regional Enterprise Tower, Downtown.
Executive Director David Donahoe says RAD is responsible for distributing a portion of the county sales tax to regional assets each year, and this year they’re giving away a total of $85.6 million. He says these hearings are held to give applicants a chance to explain why they deserve funds.
Donahoe says the hearings will run for 4 weeks, ending in mid-September. He says applicants include 10 large organizations: the Carnegie Library, Carnegie Museums, City of McKeesport, Pittsburgh and Allegheny County Regional Parks, the National Aviary, Phipps Conservatory and Botanical Gardens, Pittsburgh Zoo & Aquarium, and the Allegheny County Library Association. Smaller organizations make up the remaining 87 applicants.
Donahoe says there are no major differences this year in terms of applicants and the amount of funding, however Carnegie Library has asked for an increase from last year. “It receives funds from the state and will begin receiving money from table games revenue. Adding that all up they still feel they need an increase from the district and they’ve made that request.”
He says the board of 7 volunteer citizens will decide which 85 to 90 organizations will receive what they’ve asked for. Donahoe says there will be presentation meetings and public meetings sometime in October before any decisions are final.

Carnegie Library Updates Community

The Carnegie Library of Pittsburgh has released a community update on its uncertain financial health.

Library spokeswoman Suzanne Thinnes says community meetings this summer have centered on several different funding scenarios.

“What would happen if we have adequate funding to continue or to expand library service, what would that look like? What would it look like if library funding remains the same for the next several years, and what would happen if, unfortunately, library funding would be cut? What services would our customers like to see more of? What [do] they value?”

The library’s website says it has lost about $2 million in state aid since 2009, reflecting an ongoing downturn in state library funding. That contributed to a dismal budget outlook that prompted the Library Board to announce closures, consolidations, and fine increases last year. Those plans are on hold until January, due to stopgap funding from the City of Pittsburgh.

The Library has also applied for almost 10% more funding from the Allegheny Regional Asset District (RAD) and will present its case to the RAD Board August 24. If the increase is approved, total RAD support would jump to more than $19 million.

Thinnes says the Library’s Public Private Task Force will release a report on its efforts to find sustainable funding within the next several months.

RAD Approves SEA Refinancing of 1999 Stadium Bond

At Tuesday’s board meeting, the Allegheny Regional Asset District approved a request from the city-county Sports & Exhibition Authority to refinance a 1999 bond issue totaling $176.5 million.

The SEA also plans to refinance a separate bond issue of $186 million.

RAD Executive Director David Donahoe says the SEA will refinance the bonds next month to take advantage of lower rates.

Donahoe says the bonds were originally issued to fund the renovation of the David L. Lawrence Convention Center and the construction of Heinz Field and PNC Park.

He says the proceeds, estimated at $5 million, will be used to buy out the lease on the Convention Center’s air conditioning system and pay for other renovation costs.

“Once they do that, they will be able to lower their operating budget and therefore decrease the amount of subsidy that is required for the Convention Center,” says Donahoe. “So the District Board agreed to do that, and they hope to achieve that by a sale of about $177 million in bonds in July.”

Donahoe says if the SEA can sell more bonds, they will use the additional proceeds to pay for routine capital maintenance at the Convention Center.

Unless positive revenue trends reverse, the RAD Board of Directors also plans to release funds they are withholding from the region’s “major assets.” Donahoe says every year, the District holds back 10% of the funding for some recipients until it’s sure that it can cover all of its commitments.

Donahoe says the withheld money will be disbursed in July if a review of June and July revenue proves favorable, which he says has been the trend for the first five months of the year.

RAD Gets Library Audit

An independent audit of the Carnegie Library of Pittsburgh was delivered to the Regional Asset District Board Tuesday but it held very little new information. The audit was the RAD board’s response to public outcry over the library’s announcement last year that it would close four branches in an effort to keep its budget balanced. PerenteBeard was hired to do the work and asked to look at 10 specific questions including the library’s cost containment efforts, officer compensation, efforts to find options other than library closure and how the list of libraries to close was formed. ParenteBeard Partner David Duffus says the library did a good job in holding the line on costs, set pay comparable to others in the peer group, looked for other budget saving options and had a “robust process” for choosing which branches to close. He says, “There were multiple criteria that they evaluated, those criteria were objective and were applied evenly across the system. Our conclusion was that they were reasonable.” The report also found that accepting state gaming revenues with the caveat that the branches remain open might not be a wise choice. Duffus says the estimated $750,000 a year would cover operating costs but not touch the capital expenditures needed to keep the library open. Library President Barbara Mistick says the audit shows that the library needs a new long-term funding source that addresses not only the Library’s operating costs but also capital needs. She says it will be turned over to the task force addressing those issues. In the meantime, Mistick says, “The power of the citizens should not be underestimated.” She says it was those community voices that prompted the city to pump additional money into the Library’s 2010 budget and the state to turn its attention to the library. She says the audit also shows the board was thoughtful and reasonable but “our backs were against the wall last year” and “we were under the gun.”
Beechview resident and library activists Anna Loney say the audit was a nuts and bolts audit and only look at dollars and cents. She says she hopes further reviews will take into account the human cost of not having libraries and the non-tangible value a library adds to a community. She says she felt it was a forgone the results of the audit was a “foregone conclusion.”
The full report can be found on the RAD website.

RAD Board Approves Funding For County Libraries

The Regional Asset District Board has approved a $5.175 million allocation of funds for the Allegheny County Library Association. The RAD board did however tell the ACLA that it needed to come up with a better revised funding formula for its member libraries within 6 months. The RAD board wants to see a plan that includes funding allocations that take into consideration local support, library circulation statistics and local population. ACLA Executive Director Marilyn Jenkins says they are working with the RAD board to create a plan that will work for everyone but the 44 members of the ACLA have their own local interests in mind. Jenkins says that makes it difficult to reach a plan that everyone can agree upon but says she is confident that a plan will be reached within six months.

RAD Board Will Consider Audit of CLP

When the full board of the Allegheny Regional Asset District meets Wednesday it will be presented with a request for proposal to contract with an outside firm to audit the Carnegie Library of Pittsburgh. The recommendation was made today by the RAD board Audit Committee. The action comes a week and two days after the library system announced plans to close five of its 19 branches and cut hours at the remaining facilities. That same day Pittsburgh Mayor Luke Ravenstahl called for an audit of the library. RAD Executive Director David Donahoe says the board’s action is not based on the Mayor’s request. He says several board members came to him to ask for the audit. Donahoe says the scope of the audit is still being determined so it is impossible to say what the audit will cost and how long it will take. The scope is expected to be set before the recommendation is presented to the full board. Donahoe notes that the Regional Asset District audits at least four fund recipients a year but he says this will be a much different audit. He says those audits are used to make sure the RAD money is being spent as was proposed but this audit will be much broader and more forward looking. Donahoe says, “This is not just a budget question, other issues are involved.” The RAD Board has already asked the library system to submit a new budget now that the level of funding from the state has been set. Donahoe says the board does not feel like it has been mislead by the Carnegie Library of Pittsburgh because the library did not have a full understanding of its funding streams until the state set its budget. RAD allocated $17.6 million to the library this year as part of the library’s $23 million budget.

RAD Continues Hold on Tax Revenue

The Allegheny Regional Asset District Board has decided to continue the 10 percent withhold of revenue it began in January. RAD Board Treasurer Stanley Parker says July tax revenue, representing May sales, is 6.5 percent less than one year ago, and the second consecutive month that revenue has dropped more than 5 percent. It is the biggest drop in revenue RAD has experienced since the body formed. The board is to meet again in September to discuss the allocations again. According to trends, an upswing is expected in August tax revenue, representing June sales. Parker says he is optimistic that things will change, but it is too soon to tell. The RAD Board uses revenues from the additional 1% sales tax in Allegheny County to make grants to libraries, parks and cultural institutions.

ACLA Changes Formula for Library Funding

Member Libraries of the Allegheny County Library Association, have agreed to a new formula for the distribution of Regional Asset District funding. The Allegheny County Libraries Association is slated to receive Nearly $5.2 million next year from the 1% sales tax levied in Allegheny County. ACLA Executive Director Marilyn Jenkins says the 44 libraries in the system asked for the new funding formula. The old one had been in place since the first RAD dollars began to flow to the libraries. She says the request launched an 18-month review and rewriting process. She says the new formula is more “fair and equitable.” Among the factors that go into the formula are population, usage, the relative wealth of communities served and circulation of materials outside of the library’s service area. Jenkins says she thinks the framework of the new formula will have a long life but it will be reviewed regularly. She says among the items not in the formula but of great importance to libraries these days is computer usage. She says that may be factored in some day in the future. The RAD board must approve the new formula before it takes effect.

RAD suspends Discretionary Capital Grants for 2010

The Allegheny Regional Asset District, which bases it revenue primarily on a portion of the county sales tax, is facing cutbacks. The RAD provides operating money for parks, libraries and regional attractions. RAD Executive Director David Donahoe says that is currently their priority. He says they also provide money for the discretionary capital fund, which assists with renovations and improvements. But since there is going to be almost an 8 percent drop in sales tax revenue from last June, the program will have to be suspended. Donahoe says he hopes they will be able to restore the program for the following year. However, he says those who are funded through the operating grant are still able to spend their money on renovations. It's just that the Regional Asset District will not be able to provide additional money for improvement projects.