The Library Board is fighting back against the cutting of their capital
budget. At their meeting April 18th the Library staff was told to submit a
funding allocation of $1.6 million per year annually from 2002-2006. This has
been the normal allocation for the Library in the CLIC process. The approved
Capital Projects Guidelines for the library however is only for $1,577,000
for the entire 2002-2006 period. The City Attorney's Office has been asked by
the Library to consider whether the Library's capital funding can be
restricted this way. They expect an answer early this month.

The Library's referendum was presented to the voters as being $140,000,000 on
top of their normal CLIC funding of $1,600,000 per year for the ten year
program. After the referendum the mayor proposed cutting the CLIC funding for
the ten years. The funding for years 2006-2010 was restored in that
$1,600,000 per year will be "reserved" to complete capital improvements after
all referendum funding has been spent. Net result a cut in capital of about
$6,500,000.

The CLIC submittals still show that the Library has not resolved their
operating shortfalls for the improved buildings. One example: Northeast
Library shows operating costs of $398,720 for 2001. The estimated operating
costs for the first year of the remodeled and enlarged space is estimated at
$1,238,000. That is a a shortfall of $839,280 per year for one community
library. The operating revenue source is listed on their CLIC submittal as
"To Be Determined."

For those of you who can't follow the math figure it this way. Assume we
voted to give the Twins $140,000,000 for a new stadium, but the Twins knew
they wouldn't have money to hire better ball players for the new stadium. In
fact they wouldn't have money to pay for the higher operating costs of the
stadium. Now assume the mayor told them lets build the building first and
then go back to ask for more money when they see their nice stadium.  

I've covered this in detail last year but in summary, the library knew they
did not have the operating money to run the new buildings they were asking
the citizens of Minneapolis to build. Library Board members and staff say
that in a meeting at the Mayor's office the Mayor told them to get the
referendum approved first and they would worry about the operating money
later. When I asked staff where they hoped to get the money they said raise
taxes or cut services (in the brand new libraries). The Library Board went
along with the Mayor's request but were surprised when their capital budget
was cut after the referendum was passed. This would mean they would be facing
capital as well as operating shortfalls.

It should be an interesting fight.

Bob Gustafson
13th

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