1. American Library Association 2009 Annual Conference Chicago, IL FY 2010 Total ALA Budget Presentation (Annual Estimate of Income & Budgetary Ceiling) Presented By: Rod Hersberger – ALA TreasurerJuly 14, 2009 2008-09 CD#13.3 2008-09 Annual Conference

2. ALA’s Financial Value Proposition “To develop and deploy the financial resources that support the strategic plan and delivery of programs that are responsive to member needs and the improvement of library service.”

3. Budget Aligned with ALA Programmatic Priorities  Advocacy for Libraries and the Profession  Diversity  Equitable Access to Information and Library Services  Education and Lifelong Learning  Intellectual Freedom  Literacy  Organizational Excellence

4. FY 2009 General Fund Projections Budget Projections Variance Revenue $30,064,000 $27,270,000 ($2,794,000) Publishing $13,120,000 $10,869,000 ($2,251,000) MPS $ 9,752,000 $ 9,250,000 ($ 502,000) Communications $ 6,061,000 $ 5,970,000 ($ 91,000) Other $ 1,131,000 $ 1,181,000 $ 50,000 Expenses $30,064,000 $28,894,000 $1,170,000 Publishing $12,114,000 $10,229,000 $1,885,000 MPS $12,195,000 $12,136,000 $ 59,000 Communications $ 3,231,000 $ 3,205,000 $ 26,000 Other $ 2,524,000 $ 3,324,000 ($ 800,000) Net Revenue $ 0 ($ 1,624,000) ($1,624,000)

5. FY 2009 General Fund Projections Budget Projections Revenue $30,064,000 $27,270,000 Expenses $30,064,000 $28,894,000 Net Revenue $ 0 ($ 1,624,000) BC/BS $186,000 Unclaimed Checks $115,000 S & S Refund $196,000 Vacation Accrual $244,000 $ 741,000 Adjusted Net Revenue 1 ($ 883,000) Handbook $ 17,000 Publishing $105,000 Individual Incentive $ 75,000 Furlough Savings $ 250,000 $ 447,000 Use of Board Reserves* $ 436,000 One Time Expense Adjustments Operating Expense Reductions *Up to $441,500 approved by Executive Board

6. 2010 Budget Implementation

7. Bridge to FY 2010 General Fund Budgeted Revenues Revenue Projection 2009 $27,269,591 Publishing $565,911 Conferences $218,079 Dues $335,142 Other* ($ 74,218) Revenue Adjustment $ 1,044,914 Proposed FY 2010 Revenue $28,314,505 * Primarily lower interest income 2010 Revenue Adjustments

8. Bridge to FY 2010 General Fund Budgeted Expenses Expense Projection 2009 $28,894,000 BC/BS $186,000 Unclaimed Checks $115,000 Vacation Accrual $244,000 $ 545,000 Base FY 2009 Budget Expenses $29,439,000 - FTE (9.6) Reduction ($470,000) - Unfunded FTE (5.3) ($284,000) - Operating Expenses ($100,000) - Division Overhead ($444,000) - Small Division Support ($ 24,000) + Grants Overhead $ 197,000 $ 1,125,000 Proposed FY 2010 Expenses $28,314,000 2009 Expense Adjustments 2010 Expense Adjustments

9. Key 2010 Budgetary Assumptions  Budget reductions in state, city, county and private institutions will have a negative impact on expected ALA revenues  Targeted revenue increases in Publishing and Membership based on specific new products and strategies  New businesses and revenue sources i.e. increased offering of Continuing Education units and new research publication series  New business development budget of $50,000

10. Key 2010 Budgetary Assumptions (con’t)  Expectation of an additional $444,000 in GF overhead due to the PLA and AASL national conferences  Given the current economic uncertainty $337,000 in spending will be put on hold pending a full review in the fall  Built on cost reductions established in FY2009 - $470,000 savings through 9.6 FTE eliminated positions - $284,000 savings though 5.3 unfilled FTE’s - $100,000 savings on Handbook production, security and postage

11. Programmatic Initiatives and Highlights  A new division with the combination of ALTA and FOLUSA – ALTAFF  ALA Connect fully operational and Phase 2 launched  Annual Conference, Midwinter Meeting and PLA & AASL national conferences  New advocacy initiatives at all levels with ALA’s Capwiz software available for use by all 50 chapters  A national conversation on privacy led by OIF  A Spectrum Scholarship Presidential Initiative to raise one million dollars  Continuation of the “En Tu Biblioteca” and launching of the parent and children national media campaigns

12.  ALA Editions will introduce a new series: ALA Classic, handbooks, guide for the public library and reference titles  Offering Web CE  Offering IACET – approved credit equivalent units coordinated by HRDR in conjunction with other units  ORS will launch its research data sets to showcase library issues and trends New Business Opportunities

13.  Utilizing a newly created business development framework  Have built in a $50,000 placeholder for new business development  Will establish an advisory group of member leaders Business Development Enhancements

14. FY 2010 Expense Reductions 9.6 FTE’s (eliminated) $470,000 5.3 FTE’s (unfunded) $284,000 Operating Expenses $100,000 Small Division Support $ 24,000 Additional Overhead Recovery* $247,000 Total $1,125,000 *Net of Divisions and Grants

15. General Fund Revenues/Expenses 2008 - 2010 Revenues Expenses Unallocated Expenses Net Revenue 2009 Budget 2008 Actual $30,064,112 $30,064,112 $ 0 $28,026,732 $27,346,587 $ 0 $ 680,145 2010 Proposed $28,314,505 $27,977,505 $ 337,000 $ 0

16. FY 2010 Total Revenues By Fund $54,428,945 OPERATING FUND $44,921,111 PLANT FUND $0 GRANTS & AWARDS $8,891,038 LONG TERM INVESTMENTS $616,796 General Fund $28,314,505 Divisions $16,250,601 Round Tables $356,005 Headquarters Building Huron Plaza & WO Operating Furniture & Equipment Awards Unrestricted Temporarily Restricted Permanently Restricted Huron Plaza Building TOTAL ALA OPERATIONS $44,921,111 Capital Budget $2,156,539 Grants Technology $1,659,448 Furn/Equip & Building $497,091

17. FY 2010 Total Budgetary Ceiling By Fund $64,432,034 OPERATING FUND $54,924,200 PLANT FUND $0 GRANTS & AWARDS $8,891,038 LONG TERM INVESTMENTS $616,796 General Fund $28,314,505 Divisions $25,462,815 Round Tables $1,146,880 Headquarters Building Huron Plaza & WO Operating Furniture & Equipment Awards Unrestricted Temporarily Restricted Permanently Restricted Huron Plaza Building TOTAL ALA OPERATIONS $54,924,200 Capital Budget $2,156,539 Grants Technology $1,659,448 Furn/Equip & Building $497,091

18. Fiscal Year 2010 Budget - The Next Steps - Details and Approval

19. Total ALA FY 2010 Budgetary Ceiling + Net Assets (Unexpended balance remaining from FY 2009) Budgetary Ceiling = Revenue (Anticipated for FY 2010) See Article IX, page 30 of ALA Handbook

20. Total FY 2010 ALA Budgetary Ceilings General Fund Divisions Round Tables Grants & Awards Long Term Investments Total ALA FY 2010 Budgetary Ceiling $28,314,505 25,462,815 1,146,880 8,891,038 616,796 $64,432,034

21. COUNCIL ACTION TO BE TAKEN

22. REQUEST OF COUNCIL Approval of FY 2010 Budgetary Ceiling of $64,432,034

23. Thank You for Your Attention