Tulsa library system budget takes hit from property tax cut [Tulsa World, Okla.]

May 18--The Tulsa City-County Library has cut more than $800,000 from its proposed operating budget for fiscal year 2013-14 after State Question 766, which passed last year, reduced the amount of property tax revenue entities such as the library system receive.

The state question exempts intangible personal property, such as trademarks, patents and customer lists, from ad valorem taxation.

The tax was previously paid by large businesses such as pipelines, railroads and airlines whose business property moves across county lines.

Current estimates have the state losing between $50 million to $100 million in revenue, according to the Oklahoma Policy Institute. The library system estimates it could lose about $700,000 of property tax funding, the system's largest source of revenue. The operating budget for 2013-14 is $26.8 million, down from $27.6 million last fiscal year.

With the news of this reduction, the library's Chief Financial Officer Gail Morris and her staff went though the budget to find expenses that could be cut or minimized.

"Every (budget) request was looked at," Morris said.

The materials and audio visual budget took the biggest hit in the proposed budget.

Travel was also significantly reduced, and a modified hiring freeze has been put in place.

"We always analyze openings," Morris said. "We'll fill vacancies with existing staff where feasible."

Representatives from the human resources department also negotiated with the library's health insurance provider to keep health-care premiums the same as last year.

The cuts won't affect the planned renovations at Central Library. The Tulsa Library Trust, a nonprofit organization that supports the Tulsa City-County Library, has $15 million earmarked for the project. The remaining money is to be raised.

Careful budgeting has become the standard for the finance department, and finding ways to operate more efficiently was one of the goals of the master plan released last year.

"Property values have flattened, so our growth has flattened," Morris said. But "this was like a pay cut. It was unexpected that it would be this significant."

The state question is also affecting the budgets of schools, the city-county health department, technical schools and county operations, she said.

"We are working very hard to keep the customers from seeing any change because of this decrease," Morris said.

All 25 branches will remain open, and programs and services will continue or expand, she said. The number of check-out laptops and digital media will grow, as well as programming.

"We're not going to stagnate. We're not going to go backwards," Morris said, adding that the mission of the library is to improve the lives of the residents, so if a program is going to add value, it will continue.

Tulsa City-County Library

2012-13

revised budget 2013-14

proposed budget Difference

Total revenue $27,614,827$26,839,245 -$775,582

Operating costs $27,432,169$26,617,567 -$814,602

Sara Plummer 918-581-8465

[email protected]

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