Does your budget embrace the electronic era? Restructuring the academic library materials budget for ongoing acquisitions evolution

Maria Savova, Director of Information Resources and Systems, Claremont Colleges Library Jason Price, Ph.D., Director of Licensing Operations, SCELC Consortium

May 19, 2015

www.money2spare.com

What is a budget?

The budget document simultaneously serves a multiplicity of functions, including planning, monitoring, and communication”

Shreeves, Edward, Association for Library Collections & Technical Services, Collection Management and Development Committee, and Subcommittee on Budget Allocation. 1991. Guide to Budget Allocation for Information Resources. Chicago, Ill.: American Library Association.

http://blog.intohigher.com/wp-content/uploads/2013/07/Budget-jar-of-money.jpg

What do we need the budget to be able to do?

1.Capture the present

2.Predict the future

3.Support funding advocacy

http://goo.gl/U8DX7H

Questions the budget should make it easy to answer What (exactly) is the money being spent on?

How much money is left to spend this year?

How much money will be needed in future

years?

What exact funding increase is needed to

maintain purchasing power?

When we need to cut, what will be the longer-

term financial impact of the final decision?

Our main question

How should acquisitions budgets be designed to

best address these questions?

Outline

Demonstrating the power of an effectively restructured

budget

Shortcomings of a typical acquisitions budget structure

Structure and components of an optimized budget

(a process that any library can use to tailor its budget structure

for the electronic resources environment)

What is our money being spent on?

Budget format (69 rows)

Fund DisciplineMaterial

typeAcquisition

modeFormat AppropriationX

1ahbap Arts & Humanities Book Autoship Print $182,7181ahbde Arts & Humanities Book Demand Electronic $17,0001ahbdp Arts & Humanities Book Demand Print $53,1421ahbfe Arts & Humanities Book Firm Electronic $17,0001ahbfp Arts & Humanities Book Firm Print $32,8981ahjfe Arts & Humanities Journal/ JDB Firm Electronic $17,6851ahnfe Arts & Humanities NonJourDB Firm Electronic $94,8941ahboe Arts & Humanities Book Ongoing Electronic $23,1231ahjoe Arts & Humanities Journal/ JDB Ongoing Electronic $347,6621ahjop Arts & Humanities Journal/ JDB Ongoing Print $32,9241ahnoe Arts & Humanities NonJourDB Ongoing Electronic $126,1891ahbse Arts & Humanities Book Standing Electronic $01ahbsp Arts & Humanities Book Standing Print $80,181

Pivot Chart Power!

Filter to “Journals” & Books only

Add Discipline - Arts & Humanities

Switch Discipline - Sciences

Books (Sciences)

Books (Arts & Humanities)

Book Format & Acquisition Mode

Print

Electronic

Autoship

Demand

Firm

Standing

E-standing

E-ongoing

E-firm

E-demand

Traditional library budget acquisitions funds

Books (autoship)

Books (standing orders)

Books

Serials

Microform

A/V

Electronic resources

acquisition mode

acquisition mode

material type

material type

material type

material type

material format

http://www.flickr.com/photos/86530412@N02/7932571974/

Subject area:

Acquisition mode (nature of spending)

Firm/outright purchases

Demand driven (mediated)

Demand driven (unmediated)

Standing orders

Ongoing (subscriptions)

Approval Plan autoship

LEV

EL O

F D

ISC

RETIO

NS

TA

FF I

NV

OLV

MEN

T

Books (autoship)

Books (standing

orders)

Books

Serials

Microform

A/V

Electronic

resources

acquisition

mode

acquisition

mode

material type

material type

material type

material type

material format

print books autoship

print books standing

orders

print one-time

print ongoing

physical one-time

physical one-time

mixture of material types

and acquisition modes

Traditional library budget acquisitions funds

The “Electronic resources” fund

The “Electronic resources” fund

Color = Format

Shape = Material Type

Pattern = Acq. Mode

What’s wrong with the typical electronic resources fund?

Excessively large

Unpredictable catch-all

Unclear where certain resources belong Ebook “standing orders” Streaming media

*Mixes acquisitions with different

levels of discretion

Budget structure based on Faceted Classification Schema

https://www.cloudset.net/hc/en-us/articles/420212-Faceted-Knowledge-Base

Recommended new Acquisition budget

structureFacets - the four core aspects of

information resources acquisitions:

(1)administrative unit/subject/discipline

(2)material type (book v journal v primary

source, etc.)

(3)acquisition mode (purchase vs subscription,

etc.)

(4)material format (print vs electronic)http://www.dreamstime.com

Material type Material format

b - Books

j - Journals and

journal databases

m - Media

n - Non-journal

databases

p - Print / physical

e - Electronic

Acquisition mode

Firm/outright purchases

Demand driven

Standing orders

Ongoing (subscriptions)

Approval Plan autoship

Administrative unit as facet Large administrative library unit: branch,

discipline group, large subject area, etc.

CCL’s Admin units:

AH – Arts and Humanities discipline group SS – Social Sciences discipline group ST – STEM discipline group MD – Multidisciplinary SC – Special Collections AS – Asian Library

Combining one attribute of each facet to create each

fund

Our new fund codes

ahbap Administrative Material Acquisition Material

unit type mode format (ah) (book) (autoship)

(print)

All possible facet combinations = 240 funds

6 X 4 X 5 X 2 = 240

Meaningful facet combinations = 126 funds

Books

Print

Electronic

Firm orders Autoship Standing orders DDA

Firm orders Standing orders Ongoing

subscriptions DDA

http://www.canstockphoto.com

www.fernandobiz.com

Journals and journal databases

Print

Electronic

Ongoing subscriptions

Ongoing subscriptions

Firm orders

http://www.flickr.com/photos/thefirebottle/122895549/

Non-journal Media databases

Electronic Ongoing subscriptions Firm orders

Physical Firm orders DDA

Electronic Ongoing Firm orders DDA

http://www.flickr.com/photos/elgrandee/3217549652/

Meaningful facet combinations = 126 funds

CCL’s budget funds = 60 funds

AHSC

AS

MD

SS

ST

Advantages of the schema

• These 60 funds disambiguate resources across:• Discipline / Administrative unit• Material type• Acquisition mode / Level of Discretion• Material Format

• One example of why this matters:• Accurate Prediction and Advocacy

Communicating impact of inflation

Effective Purchasing Power

FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

Library Budget

Purchase Index

Purchasing Power Gap, -27.5% over 8 years

Budget Portion FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11

Library Budget   $2,709,771 $2,833,271 $3,035,814 $3,268,814 $3,432,255 $3,603,855 $3,611,855 $3,431,262 $3,283,853

Purchase Index   $2,709,771 $2,908,777 $3,072,473 $3,387,275 $3,566,978 $3,804,940 $4,068,805 $4,310,181 $4,527,143

Journals Inflation 58.36%  7.20% 7.10% 15.21% 7.73% 8.27% 8.80% 7.70% 6.00%

Book Inflation 28.29%  8.70% 3.50% 3.00% 0.40% 5.20% 4.00% 4.00% 4.00%

Other Inflation 13.35%  5.10% 3.70% 3.90% 5.10% 2.80% 5.00% 2.30% 3.00%

Total Inflation     6.84% 5.33% 9.29% 5.04% 6.25% 6.49% 5.60% 4.79%

Library Budget Change     4.36% 6.67% 7.13% 4.76% 4.76% 0.22% -5.26% -4.49%

Purchasing Power Change     -2.60% -1.19% -3.50% -3.78% -5.28% -11.23% -20.39% -27.46%

*2010/11 includes a facilities assessment for the Records Center ($147,409)

Questions and DiscussionYour questions

Questions and DiscussionDiscussed in more detail in the

manuscript – e-mail us for a copy

“Giving up” on subjects Implementing the faceted structure Allocation principles and procedure Predictability within each budget

Maria Savova, Director of Information Resources and Systems, Claremont Colleges Library – maria_savova@cuc.claremont.edu Jason Price, Ph.D., Director of Licensing Operations, SCELC Consortium - jason@scelc.org