The Budget Process

Every library, regardless of size or type allocates funds for information resources. The breakdown has traditionally been 60% Staff, 30% Allocations budget, 10% Operating Expenses. While salary percentages have risen and libraries allocations budgets may vary, the budget allocation formula is a useful tool to help libraries determine their allocation needs. These formulas serve as tools by which persons responsible for collection development may translate collecting priorities into concrete form. They also offer a history where library funds for collection development are being spent to provide an audience with a sense of priorities.

Allocation formula should follow the mission and goals of the library, parent agency, collection development policy and yearly and long term priorities. The allocation process involves planning, analysis of the wider economic landscape analysis of priorities, forecasting and projection of continuing obligations. Allocation criteria should reflect issues such as current collecting emphasis, the size and character of user community, need for multiple copies, costs of materials, new information formats, the extent of reliance on serials or monographs, availability of other area resources and replacement costs. Formula should also present a realistic plan, embrace change and balance between political and special interests forces.

There are several types of allocation methods and formula. Historical allocation methods involve basing the allocation budget on the previous year's budget. In contrast, the zero -based method involves a division of resources recalculated each year, offering more sensitivity to change. Specific named formula use varying criteria and give different value, percentages or weights depending on the type of formula and ranking of priorities. While old formulas account mostly for serials and books, new formula taking into account electronic changes are presented in journals such as JASIS and Collection Management.

Most allocation budgets are structured according to allocation units. These may be divided into funds for formats (i.e. monographs, serials, electronic information, media), allocation by subdivision (current, retrospective, replacement), allocation by department (branch or central library, reference or circulating materials) and discretionary funds (special needs, i.e. 9/11 books).

Current issues with regard to budget allocation involve the serial inflationary crisis and ownership versus access of electronic materials. Serials have cut severely into the allocation budget because of double-digit price inflation in the 1990's. Between 1986-98 serials prices for academic libraries rose 169%, 700% since 1970. For electronic materials, especially in relation to serials, another large issue involves electronic access versus ownership - Ôaccess' for the library implies ownership by someone else.

Specific types of libraries each also have their own library specific allocation criteria. Academic criteria surround issues of faculty composition, undergraduate and graduate enrollment. Public library allocation criteria surround the composition of community (age, ethnicity, educational, socio-economic), ratio of copies per title for best sellers and juxtaposition of new and old formats. Special libraries budgetary allocation criteria focus on the need for exhaustive coverage in certain areas and necessity to prove cost worthiness and the Ôvalue' of the library.

Finally, the budget allocation process and formulas should be reviewed regularly. Comparisons should be made with past allocation budgets and comparative costs of sister institutions. The allocation budget should be examined within the larger library budget and state of the current collection so future suggestions can be made.