ALA Stimulus Package

ALA seeks $100 million in stimulus funding as U.S. libraries face critical cutbacks, closures
ALA Press Release: October 29, 2008

The American Library Association (ALA) is asking Congress for $100 million in stimulus funding to aid the nation’s working families during the current economic crisis. Aid is sought to stem the bleeding of critical library services that help Americans with job searches, small business development, financial literacy and other essential assistance in hard economic times.

Public libraries are facing the most severe cutbacks in decades as budget shortfalls hit cities, towns and rural areas across the country, according to the association. From Los Angeles to Boston, libraries are cutting hours and services; some are even facing the threat of closure at a time when their support is needed most.

ALA’s recommendation comes as Congress holds hearings this week on economic growth and job creation, including a Joint Economic Committee Hearing tomorrow.

Public libraries depend heavily on local property taxes to maintain operations. Across the country increased foreclosure rates, lower home values and fewer sales have sharply reduced available funds, forcing libraries to cut services and hours.

“America’s free public libraries provide a lifeline for citizens in need across the country,” said ALA President Jim Rettig. “Ensuring Internet access, career workshops, business seminars and other economic support services are vital links in the nation’s financial recovery. This is no time to cut much-needed support, reduce hours or close library doors.”

Investments in libraries often yield high dividends for communities. Studies show economic returns from salaries and wages paid to staff, construction costs, employment services and library purchases. A recent Pennsylvania study points out that for every dollar invested in the public library, the community receives a return of $5.50. A similar report from Florida shows a $6.54 return on investment.

“Economic studies demonstrate the positive impact of spending in local communities,” said Joe Matthews, an internationally recognized expert on library management with an MBA degree from the University of California, Irvine.

“Known as the multiplier effect, every dollar spent in the community will ripple through the economy with an impact ranging from 7 to 11 times the initial spending,” he added. “The proposed stimulus spending for America’s public libraries will have an enormous impact on local economies, helping communities across the country get back on track financially.” Matthews is an acclaimed author and professor at San Joe [sic] University. READ MORE

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