Return on Investment in Florida’s Libraries: Using the Study Phyllis K. Pooley, MBA, JD

Return on Investment in Florida’s Libraries: Using the Study Phyllis K. Pooley, MBA, JD Associate Director

Collect, Analyze, Disseminate data on Northwest Florida and the state • Sponsored Research • Web/Print publications • Free data services • 850-474-2657 • www.haas.uwf.edu

Public libraries are places where all citizens can reap the benefits of their tax dollars. Study found that for FY 2008, Florida public libraries returned $8.32 for every $1 spent

What does ROI Mean? • Results measured by collected revenues after taking into account cost of the effort • Can also measure how long it takes to receive tangible benefits

For Public Libraries: Revenues = Budget from funding entity Expenses = Cost of effort to provide services

No profits generated = no return on investment. Story over?

ROI is also: A measure of investment versus OUTCOMES (not just profit)

For Public Libraries: Investment = Budget from funding entity (Revenue Investment) Outcomes = Cost to Use Alternatives - (Revenue Investment + User Investment ) + Lost Use Benefit + Community Economic Benefit + Economic Return

Outcomes = $ values User Investment: The investment by users in their time, travel, purchases, etc., necessary to use public libraries or specific services

Outcomes = $ values Cost to Use Alternatives: The estimated costs to use alternatives to the public libraries should they cease to exist, and should users decide to pursue alternatives (measured in terms of time and other expenditures).

Outcomes = $ values Lost Use Benefits: These are benefits derived from use that would be lost if the public libraries did not exist.

Outcomes = $ values Community Economic Benefits: These are benefits that flow from the public library such as library spending with vendors, contractors, etc., in the state; revenues generated by vendors and contractors in the library (e.g., copying, coffee shop, gift shop); and spending that occurs as a result of library use (e.g., restaurants, stores, coffee shops).

Outcomes = $ values Economic Return: The results of public library use that can be expressed in economic terms. (Such as impacts to Gross Regional Product)

User Investment: The investment by users in their time, travel, purchases, etc., necessary to use public libraries or specific services. User Investment: The investment by users in their time, travel, purchases, etc., necessary to use public libraries or specific services. User Investment: The investment by users in their time, travel, purchases, etc., necessary to use public libraries or specific services. Cost to Use Alternatives: The estimated costs to use alternatives to the public libraries should they cease to exist, and should users decide to pursue alternatives (measured in terms of time and other expenditures). What DON’T the ROI Study results say about public libraries?

If ROI isn’t high, we aren’t doing a good job . . . • No, ROI may be high because of carryover effect coupled with budget reductions.

If my ROI is higher than another libraries, my library is better than theirs . . . No, ROI as measured by the study is not better or worse if it is high or low.

If ROI goes down, we are spending too much money . . . • No, a decrease in ROI in this context does not necessarily mean a decrease in efficient use of funds

What DO the ROI Study results say about public libraries?

A positive ROI means our public library is providing positive value to the community . . .

Thank you! Questions?

Return on Investment in Florida’s Libraries: Using the Study Phyllis K. Pooley, MBA, JD