Table of Contents-Letter-Introduction-Chapters: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, Glossary, Internets Links, Calendar of Events, Freedom to Read Statement, Index

Finances11 

Building the Budget

Once you know where funding comes from and how much you can expect, you can begin to prepare the budget. Budgeting is vital to the library's planning process and one of the most important Board functions.

The budgeting process includes the following steps:

  1. Define the library's goals for the upcoming year based on the library's long-range plan.
  2. Gather information to project costs of providing services and meeting the year's goals.
  3. Estimate potential income from taxes, gifts, fines, fees, grants and any other possible source of income.
  4. Compare costs and income to see if all the goals can be met. If income exceeds or equals costs, the budgeting process continues.
  5. Adjust objectives if funding doesn't cover goals, or search for additional funding.
  6. Present the written budget to the funding body.

The Board and the director work on the budget together but, ultimately, the Board is responsible for its approval and will typically present it to the entity with funding authority, within the required time frame and procedural steps.

As in any planning activity, it is important to establish a schedule. A comprehensive, balanced budget cannot be compiled overnight. Allow adequate time for planning, gathering information, reviewing goals and producing a finished product that will allow the library to meet the community's needs for library services.

The schedule on the next page shows specific steps for building the budget. Key dates are also included in the calendar in Appendix C.

11-1

Sample Budget Planning Calendar
Based on a July 1 to June 30 Fiscal Year

July

Review fourth quarter budget report.
Review goals, objectives, strategies for past fiscal year.
Make adjustments in present fiscal year if needed.
August Review final annual report for just-ended fiscal year.
Approve and submit it to appropriate governing body and State Library.
September  Begin work on needs assessment for next year.
Brainstorm approaches.
Delegate follow-up effort (director, committee).
October  Review first quarter report.
Evaluate objectives, strategies in progress.
Review previous fiscal year audit.
November  Review present costs, projections.
Review current needs assessment; brainstorm possibilities for responses.
Reach agreement on prioritized needs.
Assign further research if needed for June reporting.
Obtain and review information on projected revenues for coming year.
December  Review goals, objectives for present year.
Establish goals, objectives for coming year based on staff, community and other input, as well as agreements of previous month.
Distribute goals, objectives with request for appropriate strategies and budget requests.
January  Review second quarterly report.
Review strategies and budget requests.
Prioritize by objectives established in November.
Assign committee (if not already done) to work with the director to prepare draft budget for Board review.
Reconfirm projected revenue information.
February  Review draft budge prepared by director and committee.
March  Consider holding a public hearing on draft preliminary budget.
Adopt preliminary budget.
April  Submit preliminary budget request or certified budget to funding body.
May  Continue to work with submitted request or budget.
Review third quarter budget report.
Adopt final budget for next year and submit it to appropriate authority.
June  Review and finalize any adjustments in closing out the present year.

11-2

Table of Contents-Letter-Introduction-Chapters: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, Glossary, Internets Links, Calendar of Events, Freedom to Read Statement, Index