Treasurer Liz Bishoff

Of the dozens of items discussed at the fall meeting of the ALA Executive Board, November 2–3 in Chicago, the Association’s FY 2003 budget generated the most actions. The intense budget talks centered on how ALA can maintain revenue, reduce expenses, and protect net assets in the current economic climate; they ended with the sudden announcement by ALA Treasurer Liz Bishoff that she would resign next June, a year ahead of her term expiration.

With ALA already in the third month of its fiscal year, the board approved a slightly revised budgetary ceiling of $49,920,780 (EBD#4.4.1), which includes a projected general fund of $27,684,555, division budgets totaling $17,679,043, round-table funds of $689,731, physical plant funding at $192,000, grants and awards at $3,029,590, and long-term investments at $645,863.

Executive Director Keith Fiels then proposed $1.5 million in reductions to the ’03 budget (EBD#12.12) as approved. To be implemented by the unit managers, the cuts are expected to come mostly from reduced travel expenses, attrition, and deferred salary increases.

ALA Associate Executive Director for Finance Gregory Calloway led the board through a recap of the FY 2002 budget as of the August 31 close. At the November 2 session Bishoff prompted the board to approve a $174,392 draw-down from the board-designated reserve to offset unbudgeted expenses largely resulting from the $1.3-million cost of ALA’s lawsuit (EBD#4.1.1) challenging the Children’s Internet Protection Act.

“These are pretty good numbers,” Calloway said, reminding the board that the 5% budget deferment implemented last fall enabled staff to meet revenue targets and receive earned merit increases that had been frozen at 2%. Calloway warned that the ’03 budget could also require a draw-down of over $100,000 from reserves to balance the budget (EBD#14.2, #12.12).

Bishoff, Nancy Davenport, and other board members stated that they were not comfortable with budgeting for a deficit. Bishoff became frustrated by the board’s indifference to her concerns and momentarily left the room.

Fiels assured the board that he would adjust the budget and come up with “a plan to cut $1.6 million instead of 1.5,” noting that “this is the most volatile fiscal year we have ever been in.” Presenting a written report to the board (EBD#12.5), he warned that “we could find ourselves in July looking at a huge deficit.”

In announcing her resignation the next day, Bishoff said regretfully that being ALA treasurer was too demanding and was jeopardizing her health.

Budget issues were also raised in connection with the third year of the “@ your library” campaign, during a report by Associate Executive Director for Communications Gerald Hodges (EBD#12.2, #12.3). Immediate Past President John W. Berry expressed concern over how the planned “mini campaigns” by library type were going to be funded. The “academic” piece of the five-year public-awareness campaign is expected to be rolled out at the Association of College and Research Libraries conference next year, said Hodges. Berry emphasized that 3M, the first campaign funding partner, had committed $3 million in in-kind services but was also footing sizeable amounts of the consultant bill, even though the money is not flowing into ALA’s coffers.

The board also discussed the use of mutual funds as a tool in managing the endowment, revisited the merits of socially responsible investing, and looked at a draft of an endowment growth plan (EBD#4.5, #4.6, #4.7).

Uncertainty in Washington

ALA Washington Office Executive Director Emily Sheketoff presented a written report (EBD#12.4) and spoke about recent developments, including the fact the U.S. Office of Management and Budget has decided that it is not printing the budget at the Government Printing Office, which “happens to be against the law” and is opposed by “some of the most powerful members of Congress ever.”

Sheketoff said that difficult federal budget decisions affecting library service would begin to shake down after the November 5 congressional elections. She speculated that a “Patriot Act II” is likely and warned that even First Lady Laura Bush’s $10-million librarian-recruitment initiative was in jeopardy.

Presiding over the board meeting, ALA President Maurice Freedman asked Sheketoff for an assessment of how ALA has helped librarians deal with the USA Patriot Act. While recapping the work of the Washington Office with ALA members and chapters, she observed, “There is no meaningful congressional oversight for this act.”

Allied Professional Association

Changing hats, the board convened briefly as the board of ALA’s newly established Allied Professional Association, while Fiels unveiled a five-year business plan for the adjunct organization. Projecting revenue of $60,000 for the first year and $323,260 for the fifth, the plan identifies the chief sources of revenue as contributions, certification fees, sale of information resources and research reports, consulting and training services, and subscriptions to an electronic personnel-related newsletter similar to Library Personnel News, which would be discontinued in ALA and resurrected in the APA.

Speaking for the Budget Analysis and Review Committee (EBD#3.1), Chair Patricia Smith told the board the plan passed muster with BARC but needed broad input before being rolled out for Council at ALA Midwinter Meeting in January (APA documents #4.0, #12.0, #12.1).

Additional actions

In additional actions, the board:

• Reaffirmed its commitment to the “key action areas” of “diversity, education and continuous learning, equity of access, intellectual freedom, and 21st-century literacy” (EBD#12.9), which were approved in 1997 and every year since.
• Learned that the Midwinter Meeting Planning and Budget Assembly would be devoted to a discussion of ALA’s APA and advocacy. a Received as “consent agenda” without discussion reports from the Development Office (EBD#6.0), president-elect Carla Hayden (EBD#7.1), and President Freedman (EBD#7.0). a Received updates on business plans for membership (EBD#12.16), technology (EBD#12.17), and a revised schedule for plan implementation (EBD#12.14, #12.15).
• While planning for the third (EBD#8.0), discussed the recommendations of the first two Congresses on Professional Education (EBD#12.8) and what to do about the fact that some are being ignored.
• Discussed finding the right home in ALA for the “equity of access” priority (EBD#1.5) and unsuccessful attempts to frame the issue for the Association. President-elect Hayden said it would be a key focus of her presidency.
• Furthered an ongoing discussion of board governance and accountability, the effectiveness of liaisons to member groups, and how to raise the quality of discussion on the Council electronic list.
• Discussed in closed session nominations for ALA president, the endowment trustees, honorary membership, and representatives to the International Federation of Library Associations and Institutions and ISBBY.

Other board members present were Camila Alire, Kathleen Bethel, Ken Haycock, Kenton Oliver, Molly Raphael, Barbara Stripling, and Patricia Wong. —L.K.

This report highlights items American Libraries considers to be of the most interest to the general membership of ALA. Official documentation (EBD#) is available from Elizabeth Dreazen, Office of Governance.

Posted November 21, 2002.