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Unit 11: Budgets

Typical budget calendar: Notes
• February-March: The director reviews the annual report and the previous year’s data to
ascertain trends, patterns, and changes.
• Spring: Library board reviews long-range plan and library service goals in light of trends.

• Mid-year:

— Library director and board review expenditures and revenues to determine if current
budget is on track.
— Municipality begins budget process, establishing budget calendar and guidelines.
— Director reviews budget guidelines and obtains direction from the board for budget
preparation.
• Late summer: After discussion, director drafts a preliminary budget for the board.
• Late summer/early fall: Board reviews preliminary budget and approves or revises the
budget. The director makes adjustments to the budget based on board input and submits
the board-approved budget request to the municipality.
• Fall: Budget is reviewed by the mayor, administrator, or finance committee, who may
request additional information from the director or board. Municipality holds a budget
hearing, reviews budget, and may make amendments. Public may comment on programs
or services before a final budget is approved.
• Year end: Depending on municipal appropriation, the director and board may need to
adjust expenditures.

11.1.2 Sources of Funding
Local tax support: The bulk of the funding for most Wisconsin public libraries is provided by
the municipality or county that established the library (or, in the case of a joint library, each
of the municipalities). To qualify for library system membership and services, funding provided
by that governing municipality or county must be maintained at a level at least equal to the
average funding provided for the previous three years.
Fines may be a source of library revenue, but the practice of charging fines is the subject of
debate in the library community. Some argue that fines’ effectiveness in recovering materials
is questionable, the revenue stream is minimal compared to other sources, and fines can create
ill feelings among borrowers, or discourage use of the library. Others say that, without fines,
patrons would not consistently return materials on time. In establishing a fine policy, a library
board should consider not only the possible revenue but also the potential negative public
relations effects.

Under Wisconsin Statutes Section 43.52(2), public libraries may not charge fees for information-
providing services. Fees and charges for such things as making computer printouts and using
a copy machine are permitted. Most fees, charges, and sales by public libraries may be subject
to the Wisconsin sales tax and any county and special sales taxes.
County support: Under the county funding section of the law (Wisconsin Statutes
Section 43.12), counties are now required to pay each public library in the county or in an
adjacent county at least 70 percent of the cost of library services provided to residents of the
county that do not maintain a public library. The only exceptions to this requirement are
consolidated county libraries and counties with a population over 500,000. Cost calculations
for this requirement are to be based on total library operating expenditures not including

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