Okay. Okay. The bell rang. So, I'll have to wait for the next round for my follow-up question. Thank you. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilwoman Miller, if she's in the room. (No response.) 2464 Operating Budget - 4/6/05
Since she is not, the Chair recognizes Councilwoman Tasco.
Could you tell me, when was the foundation -- when did it come into play and why? What was the purpose of establishing a foundation?
Sure. I'll be happy to. The foundation was created in 1891. It was the entity that created the Free Library of Philadelphia. It created a library to be free to the people of Philadelphia because there were other libraries that charged money. Just to make it a little more clear, it was about five or six years later that that foundation turned to the City of Philadelphia because the City was growing so fast, that the little bit of money that it had could not truly support the library. And 2465 Operating Budget - 4/6/05 that's when the City became very much involved and created what we now call a Board of Trustees. That -- As I mentioned earlier, that foundation at that time was called the Free Library of Philadelphia, Incorporated, which is still the legal name. And in the 1980s or perhaps early 1990s, it registered the official name as doing business as the Free Library Foundation to distinguish the two boards and the two operations, but it has existed and met ever since 1891.
So, when they were founded in 1891 it was for the purpose of supporting free libraries.
At that time, yes. At that time it created the libraries, and it was for supporting the libraries.
Okay. Now, in 2005, the mission -- Is the mission the same?
No. The mission has changed, in that it does not pay for the basic support of libraries. Its role now is 2466 Operating Budget - 4/6/05 to supplement, not replace, not supplant, the public money that goes into libraries.
It does that in a variety of ways. It raises money from foundations and individuals. It does that, you know, for new programs, for programs that the public monies cannot operate. Our after-school program, for example, was started, if I am not mistaken -- Well, it was either with a grant from the Pugh or the William Penn Foundation. I'm sorry. I don't have the specifics of it. And then over time, it was taken over by the City of Philadelphia. When we renovated the branches, the amount of money we were able to get from the City for that renovation project would not cover the amount needed, and the foundation raised almost double that amount to go with it, to add on to what the public money is. The foundation continues today to support the summer reading program. It 2467 Operating Budget - 4/6/05 supports the One Book, One Philadelphia program. It supports the authors who come into the central library and to the branches. Not all the branches. Some branches have been handling that on their own, but quite a few of the branches. And the list could go on and on. But that is the purpose and the background to the foundation.
Are any of the library fees allocated to the foundation?
When I reviewed the testimony from a previous meeting, I became aware of some confusion that existed about the fines. The fine money -- Part of the fine money goes to the Board of Trustees, the City body that is in charge and entrusted with the Free Library. That is an arrangement that was established in 1992 and '93. And I'd be happy to provide Council with any of the legal documentation for that. A portion of that money that is collected for fines still goes to the City, 2468 Operating Budget - 4/6/05 into the City General Fund. The other part of that money is collected by the Board of Trustees. However, it is important --
You're saying that the fees and the fines are -- a portion of it is given to the City General Fund?
Two hundred and seventy some thousand dollars. And that is the arrangement that was made, that it goes into the General Fund. What the Board of Trustees wanted to do, back in '92 and '93 they wanted to raise the fines and have the additional money be used by the board itself to go to support the library programs. And as a matter of fact, specifically, the agreement with the City is to support volunteers, then called community participation, to support materials for at-risk children, and... You know, and those 2469 Operating Budget - 4/6/05 were the two primary areas, programs and materials for at-risk children.
Can I just finish this, Madam President? Up until '91 and '92 all of the fees and fines went to the City General Fund?
The total amount that was collected last year was close to $800,000.
And of that $800,000, you're to give $200,000 to the City?
Well, we were told during the course of the hearing that when we appropriated... I can't get the question right... that you were to raise $1 million?
We gave them $1 million. 2470 Operating Budget - 4/6/05
We gave you $1 million, but you had to match it. How was that --
There's a great deal of confusion over that. I do know that the City Council approved in the budget an additional $1 million. We were also districted by the Budget Office and the City of Philadelphia -- I don't mean just the Budget Office -- to raise an additional $1 million. It was not a cause and effect. It's easy to understand how people see them as connected. The fact is, when the City budget is adopted --
-- there is then, as I indicated earlier, a target spending level that is established for us, and that is -- And in order to -- We cannot go beyond that. As a matter of fact, positions will not be replaced. People will not be hired unless, of course, the Budget Office approves it. 2471 Operating Budget - 4/6/05 And... You know, and that is the... But on the other hand, I understand how there's a great deal of confusion, even perhaps on part of my staff, that there is a promise, a quid pro quo, that you raise the money, you can have the money. But that's not exactly how it transpires.
The Chair recognizes Councilman Nutter for a point of information.
Thank you, Madam Chair. Thank you, Councilwoman Tasco. Mr. Shelkrot, I believe either at the March 17th hearing or at some other hearing I seem to have a recollection that the Budget Director was at the table and directly stated that the library was told you will not get the additional $1 million that City Council allocated unless you raise an additional $1 million on top of the $800,000 in fine money. 2472 Operating Budget - 4/6/05 Now, Ms. Reed is here, and we can have her up at the table. But that's my recollection two weeks ago.
I can only tell you that my face would have recognized surprise at that time.
If the two aren't connected, then how did they come together? (Laughter.)
So, it's sheer happenstance, that the $1 million we give you you don't get unless you raise an additional $1 million. Is that what you're saying?
On top of that -- And we were told it was $800,000. So it may seem that you only needed a couple hundred thousand dollars to make your $1 2473 Operating Budget - 4/6/05 million. But we weren't aware of that $800,000 part of it goes to the General Fund.
You know, I would be happy to defer to the Budget Director. I know that she was not here last year at that time. I can only tell you the direction that I was given. And any connection between those figures is -- You know, we -- we -- we are required -- In order to fill any position, we cannot just go and fill a position. It is reviewed by the Personnel Office. It's reviewed by the Budget Office. And if for reasons that they have, maybe relate -- Certainly the Budget Office related to the City's financial condition. If they say, no, we cannot approve that, then the request to fill that position stops right there. No one -- I will tell you honestly, no one from the Budget Office has ever said to me, Elliot, if you don't raise that $1 million, you're not getting any money. Nobody has said that to me. Maybe that is 2474 Operating Budget - 4/6/05 true.
Mr. Shelkrot, why doesn't the $1 million that was appropriated --
Where is the $1 million? We approved $1 million last year simply to keep the libraries opened on Saturday.
...that the $1 million did not... I cannot answer that. I can only tell you... I can only tell you the numbers that I see when we meet on a 2475 Operating Budget - 4/6/05 quarterly basis, and if there's any difference --
Were you in fact told that the $1 million would not be forthcoming unless you were able to raise an additional $1 million in fines?
You were not? That's what we were led to believe at our March hearing. However...
I'm saying, since there's a record, you might as well look at the record and figure out who said what. (Applause.)
And? You read the record and would you concur with our understanding as to what was said?
I understand, Madam President, what was said. I can only tell you that I was never told that more money was contingent on raising more fines, fine money. I was told, this is your budget. This is the target spending level, period, the end.
Now, when the million dollars was not forthcoming, didn't you ask why? (Laughter.)
And what I was told was quite simple. The budget for the library is as you see it on paper. 2477 Operating Budget - 4/6/05
While we're on this vein, how much revenue and fines do you anticipate for FY'06 in the General Fund?
That's a very good question. As you know, as many people know, we significantly raised the fines because we were also directed to raise an additional -- additional $1 million. However, the fines --
No, no. Period. No, no. These were two separate directives. We anticipate raising approximately $800,000, just as we did last year. There were two separate directions that -- directives that I received. They were not one is based on the other.
Mr. Shelkrot, I am looking at the supporting schedules for revenues, . It would appear that for the library fines we have $1,277,000. Is that correct? Is that what 2478 Operating Budget - 4/6/05 you're anticipating that you will raise in '06?
That was the -- That was the expectation of the Budget Office. And as a matter of fact, I'm happy to indicate that that was our expectation, that there would be $1 million raised on top of the $200,000 that we had already given the city. That's why the fines were raised, but that has not materialized.
For the record, tell us what the fines were in 2002, what they were in 2004, and what they are today, and what you anticipate you're -- I hope you're not going to raise them again.
Can you give us just a little breakdown, please, for the record, because to collect over $1 million in fines, I think, is really a very, very difficult task, too, to complete. 2479 Operating Budget - 4/6/05
Well, as it turns out, you are quite right. We did not raise additional money. But let me answer your first question first. In 1992 -- And if you don't mind, we will, because there are different fines for hardbacks versus paperbacks versus children's and C.D.'s. Let's just take the hardback book cost -- fine just as an indication because they all follow a similar pattern. In 1992 the fines were cents a 14 day. 15
Well, today they are 50 cents a day. They were raised in -- in '02 and they were raised again at the beginning of this fiscal year.
And I would assume the same holds true for the paperback, the books on cassettes and C.D.s?
All of 2480 Operating Budget - 4/6/05 these fines are in place, too.
Yes. I can provide you with an entire schedule of the fines as they were in '92, in '02 and in '04. I'd be happy to do that.
Thank you. Councilwoman Tasco, you were in the process of asking questions, and I interrupted you.
Thank you, Madam President. I'm sitting here listening to this testimony, and I think I need a librarian to explain it to me. (Laughter and applause.)
I'll do my best. I 2481 Operating Budget - 4/6/05 am a librarian.
Well, we need double help, I think. Let me go back a moment to the issue of fines. Isn't there an additional revenue generation from book sales that go on during the course of the year, in addition to fines? And is it minimal or how much is that?
The big book sale that everybody is aware of is the Friends of the Library.
That's a separate and distinct organization. The books that are weeded from our collection after we go through the process of allowing other City agencies and departments to take what they would like, they are made available to the public for... I think it's a quarter apiece. The revenue of that is de minimus. 2482 Operating Budget - 4/6/05
Did we have a period of time where we had a book sale in 2002 that generated, like, $1.4 million? Was there -- Did we do like a big sale at one time?
I know what you're referring to. No, it is not as a result of a big book sale or a periodic book sale or anything like that. The only amount of money that comes close to that would be when -- a couple years ago between, you know, six months and two years ago. The... Some maps that were given to the library 50, 70 years ago, given to the foundation, I might -- I must correct that. Given to the library foundation, very clearly. We checked all the provenance and the background and the history, those were clearly given to the foundation. We do not -- These do not fit within the kind of collections that we have. And the board of the foundation, after careful deliberation, decided that it was appropriate 2483 Operating Budget - 4/6/05 to sell them, to be used for further acquisitions in those special collection areas.
So, the main internal generation, revenue generator is fines.
Specifically, for the volunteer community participation program, $185,000; for outreach to children at risk, $100,000; and for other library materials for children $238,000.
I was beginning to explain some of that earlier. The money is 2484 Operating Budget - 4/6/05 only managed by the foundation.
It is collected by the Board of Trustees. Because the Board of Trustees does not -- You know, the City -- our budget office is not set up and has not been able to manage that because it is very different from managing our normal library expenditures. So, a management arrangement has been established with the foundation for that office to manage those funds.
Does the foundation administer the programs that you discussed?
Is any of that money used for foundation staffing purposes?
Okay. What 2485 Operating Budget - 4/6/05 requires you to turn over $200,000 or a percentage of your fines to the City? Is there an ordinance that requires you to do that?
It isn't an ordinance. It's an operating agreement between me, between the library and the City Budget Office.
The programs that the balance is funded with, are they in libraries that are having their hours curtailed?
The Chair recognizes Councilman Nutter for a point of information.
Thank you. Councilman Kenney, if you don't mind, Mr. Shelkrot made reference to an understanding, as well as an ordinance, regarding why the Free Library turns over fines to the City of Philadelphia. I would at least put on the record, and unless he has contradictory information, it is a memorandum of understanding solely 2486 Operating Budget - 4/6/05 between the library, the then Chief of Staff for the Mayor, and the Finance Director. Two of those three parties, obviously, are no 5 longer here. It is a memorandum of understanding solely.
-- because 14 there's no date on the memorandum of 15 understanding. It makes reference to events 16 in '92 and events in '94, one of which was a 17 legal opinion with regard to fines. 18 It is signed by Mr. Shelkrot, Mr. 19 Cohen and Mr. Haley.
What's the total amount of savings realized by the proposed staffing reductions and hour cutbacks?
It seems quite ironic that the $600,000 that is going to some of these worthwhile programs and the $200,000 that's being turned over to the City combined would be able to keep us running. (Applause.)
I guess the question relative to the worthwhile programs, the $600,000 or so funds, they're in libraries that are planned to have their hours curtailed, correct? It would seem that the neighborhood programs then...
Well, they are -- Those libraries would be included, yes. COUNCMAN KENNEY: Well, wouldn't the priority be keeping the library open? I mean, even though the programs are worthwhile, they're not as worthwhile if the library's closed. So, if we were to work out an arrangement with the City to retain the $200,000, and use the $600,000 additionally 2488 Operating Budget - 4/6/05 collected in fines to keep the library hours and staffing at their current level, it would be a wash. And I think it's as important for an after-school program as it is to having a librarian in an open library. (Applause.)
Let me finish. The frustration is that the $800,000 is there. It's not that we're asking to, you know, or the administration is saying, we're being -- you know, we're not being responsible and we're taking money from places. I mean, you generate the money. It's $800,000. The cuts are $800,000. It seems like a pretty sensible idea to take the $800,000 until the economy gets better and do something with it to keep the libraries open. (Applause.)
You know, let me, if I may -- You know, it is easy to -- to look for -- and I understand, you know -- And, you know, a simple response. And that's exactly 2489 Operating Budget - 4/6/05 what Kevin was doing to your very specific question. But $800,000 does not tell the whole story.
But if we can forbear $18 million to the Gas Works, we could do $800,000 to the library.
It will restore those positions. But it will do nothing to enable us to open up, you know... To have that number positions is only part of the story.
Kevin answered the question which said, what were the combined savings relative to the library cutback, hours cutback and the personnel reductions. He said, $800,000.
Yes, it was. I said, how much are we realizing in 2490 Operating Budget - 4/6/05 savings to the staffing -- hours cutback and the staffing reductions? And Kevin said, $800,000. And to me that's $600,000 plus $200,000 is $800,000. I wasn't that bad at math. I mean, unless Kevin misunderstood my question.
The only thing I can tell you is that if you would like to have libraries, as we all would -- We all want these libraries open.
No one's disputing that. No one's disputing that. We're beyond that. We're all on the same page now.
Okay. It takes considerably more than $800,000 to restore libraries in every community to full-time operation with librarians.
No, that's not my question. My question was, how much are we saving with your proposed cutbacks and staffing cutbacks and hours cutbacks? 2491 Operating Budget - 4/6/05 And Kevin said, $800,000. I'm not looking to restore it back to where it was in its heyday in the '60s or '70s. I want to just get back to where we are.
How about if we restore it to where it was three years ago? (Applause.)
If you -- You know, we had 740 emergency closings. I don't believe that that -- a continuing -- that number or a continuing increase in that number is good service to the people of Philadelphia.
Was Kevin Vaughan's answer to my question incorrect or not? Is it $800,000 or isn't it?
The total number of staff reductions cost about $1.5 million. $800,000 is the net between the cost of the total -- the total layoffs and staff 2492 Operating Budget - 4/6/05 reductions, and the reconfiguration of the new operating way that -- new way the system is going to operate, with part-time staff and with seasonal staff, afternoon branches.
So, you're saying that the $1.5 million is just in staffing, and the $800,000 is in hours.
No. The $800,000 is the net between the total... Layoff and staff reduction that we experienced was about $1.5 million. But by the time you use some of that savings to hire the part-time and seasonal staff to run the afternoon branches, the net of those two things is about $800,000 which does not include benefits. That's straight salary without any of the City's benefits added.
Let me just go back. Could you do a little better if you had the $800,000, as opposed to the $600,000 and the $200,000 being spent in other ways? If you get an additional $800,000, relative to the fines you collect, could you 2493 Operating Budget - 4/6/05 utilize it to improve the situation when it comes to hours and staff? Somewhat? Not perfectly but somewhat?
The entire situation is a financial situation. So, every dollar that you could put back into the system --
Doesn't it seem fair that the money that you guys generate and collect should stay with you? I mean...
You know, we can give you figures of what it would take to hire a supervising librarian for every branch. We can give you, you know, for the branches, we can give you figures. But 16 you have to understand that the reductions 17 that we are facing have to do with the 130 18 positions that we have lost in the last 19 couple years. 20 And what this change did was forced us to reconfigure the staff to give people of the City consistent service.
Madam President, my time is up. I don't want to get in any further problems with the second floor which 2494 Operating Budget - 4/6/05 is seemingly why you're dancing around. So, I'll let you off the hook. I'm done.
Thank you. The Chair recognizes Councilman Kelly.
I just want to follow up on Councilman Kenney's line of questioning. How much is it going to take to at least keep the same amount of people that we have today in our libraries, to keep the hours the same? How much more would it take to do that, to keep our present staffing levels, to keep the hours open as they are today or last week or last month?
We can be, you know, if I'm not -- Well, if we were to restore the 2495 Operating Budget - 4/6/05 operations to where we were at the beginning of January -- and that's with the frequent emergency closings that were occurring all over the City -- that would cost about -- that would cost $1.5 million
$1.5 million. You could actually have the libraries open restoring the hours, because --
Yes. That would restore us, as I say, to where we were early January, which unfortunately still had 740 -- in a six-month period, 740 hours of lost service due to staff shortages.
Yeah. Well, I just want to make -- I want to be crystal clear on this. The reduction of the hours, plus the staff reductions and whatnot are costing -- are going to save $1.5 million; is that correct?
Since the January 1st, yes. If we were to go back to have libraries open on Saturday which we did not. We have only ten branches open on Saturday on January 1st -- or January 4th, to -- We 2496 Operating Budget - 4/6/05 had -- In the six-month period we had 470 hours of emergency closings. If we were to go back to that, that would be a $1.5 million. If we were to return all branches to be open on Saturday, as they were a few years ago, and not have the emergency closings, and have the branches open on a full-time basis, that's $5.5 million.
That's correct. And that way you would have a librarian at each one of those facilities?
We would be fully staffed at every one of our branches, the 20, as well as the others, so that we would not have the emergency closings that we have been experiencing.
All right. Well, that -- See, I have a problem. And I know in your testimony you mentioned that you had a strong library system. But I'm starting to disagree with that because I don't think what we're doing 2497 Operating Budget - 4/6/05 today is making it any stronger. I think it's making it much weaker. (Applause.)
And one of the -- I feel -- Madam President, I have been commenting a lot on the cuts in the arts and cultural institutions of this City. And I think we're doing the same thing again because I think our library system is very, very important. I think it adds to the City. It adds to the cultural input of the City. And I think that what we have to do is try to find ways of not only just getting us out of this little predicament, but I would like to see us start looking at to see what we can do to bring you up to full strength, to bring you up to where you have librarians in every one of your facilities and to keep your hours open longer. (Applause.)
Because I know, I go to the Northeast Regional Branch and many times. And it seems like at night it really 2498 Operating Budget - 4/6/05 has a lot of activity up there. A lot of groups use it, a lot of community groups. And that's another question that I have. With the reduction that you're going to have, have you been making outreach to any of the volunteers or any of the groups or organizations that could help you to keep these libraries open a lot longer than what you anticipate?
We have a very extensive volunteer program. We can -- Kevin can give you the number of hours of contributed time. It was through the use of volunteers, you know, about five years ago that we were able to expand our hours and stretch our staff out; not eliminate any, but stretch out the use of staff so that we could be open on Saturdays.
Well, if you had an additional amount of volunteers, would you be able to extend your hours in some of these 20 branches that you plan on cutting back?
No. Unfortunately, 2499 Operating Budget - 4/6/05 sir, not and maintain the level of safety that is required, not and maintain the... We can't turn over keys and open buildings to volunteers. It's a liability issue. You know, we can always use more volunteers to help us with children to extend what we can do, but volunteers can't replace full-time staff and librarians. I mean, that can't be done.
Well, I understand that, and nor should we be replacing them with volunteers. But again, I'm going to come back to this $276,00 which you have been giving to the City and it goes into the General Fund.
And is that based on the old fines, the old costs, or is it the...
It's based on the memorandum of understanding, as Councilman Nutter correctly used those formal words, and 2500 Operating Budget - 4/6/05 it is...
But is that under the new rates or under the old rates?
No. That is under the old rates because every time the fines went up, there was the understanding that it would be used for those programs that I identified.
Would you be projecting, then, an additional amount to go into the City -- general City fund, since you did increase the cost of the fines?
In other words, we're saying $276,000 went in a year ago or two years ago. And what are you projecting with the new rate of fines?
Well, with the new rate, we had projected an additional $1 million. But I will tell you right now that our analysis shows that we outstripped, outreached the market. In an analysis that we have done now -- and we are addressing these issues internally before we bring them, 2501 Operating Budget - 4/6/05 I will say, even to the administration. We are recognizing, based on the zero increase in fine revenue, and the problems that it is creating with many people in Philadelphia, that fines have reached a point where it is discouraging the use of libraries not helping getting the books back on time. The primary purpose of fines is to get books on time. An analysis that we have been doing because we want to make sure that we have the data correct, that insofar as we can, it is very clear that we knew that we were not collecting any more money. And now we have evidence to indicate that it is having a negative effect on people using and borrowing from our libraries. And we intend to change those fines in the near future. We would like to. Let's put it that way. We need to review it with the board and certainly with the administration.