The process for creating a budget, including deadlines, is defined by state laws. MRSC has created budget calendars that reference the RCWs governing the scheduling of budget-related activities while breaking down budget preparation into basic steps:
The budget is the mechanism by which the board ensures oversight of the library’s finances. The library board is legally obligated to monitor the finances of the library through:
Budgeting and planning are interwoven. The budget should be viewed as a planning tool, the map that the library follows during a fiscal period to attain its mission and planning goals. The budget outlines the library’s financial limitations and indicates the priorities that the board and staff plan to accomplish during a fiscal period. The board should maintain a broad perspective on the operation of the library and represent the community’s interest in the budget while ensuring that the budget reflects the mission statement, planning goals, and objectives of the library.
Major expenditure areas to consider when planning the budget include:
While virtually all public libraries are supported by public funds, city and district library boards receive funds and relate to their funding authority in different ways. In spite of these differences, the budget processes are comparable. Trustees are encouraged to become familiar with the mechanics of both district and municipal budgeting, regardless of their library’s funding pattern.
The Municipal Research and Services Center of Washington (MRSC) explains the budgeting process in plain English in two helpful publications:
Help for preparing budgets, including calendars that include the RCWs pertaining to budgeting preparation schedules for city and county governments, revenue forecasts, as well as current initiatives that may affect budgeting, may be found in 2018 Budget Suggestions from the MRSC. Best Practices from the Government Finance Officers Association (GFOA) provide guidance on developing budgets, fiscal policy, and other related matters.
Looking for help with general ledger accounts? Puzzled by accounting terms? Help is available from the Washington State Auditor’s Office:
The board of trustees and the library director have distinct and separate roles in the budgeting process. The director develops the budget and presents it to the trustees for review, refinement, public hearings, and adoption. In municipal libraries, advocacy for the library’s budget is another important role because final approval of the city budget is the responsibility of the municipal governing authority. Because the governing structure of municipal and district libraries is different, the budget process is different.
Note: The municipal library board should take the opportunity to support the library director in presenting the budget to the governing body, usually during a city council hearing, as it considers adopting the city’s budget. In some cases, the board chair makes the budget presentation along with the library director. The board of trustees should be strong advocates for the library and be present at the presentation of the budget to the governing authorities. In an age of shrinking budgets, it is important to present the budget in a way that is clear and compelling. MRSC provides guidance and examples on their web page, “Communicating About Government Spending (What We Get for Our Dollar).”
Although the library’s budget proposal has been developed to ensure adequate funding for library services and programming, there are no guarantees that the final appropriation will equal the amount requested. The city may mandate parameters for budget development that could affect the final appropriation. The library’s budget is but one of several budgets that will comprise the city’s total budget and must compete with the needs of other city services.
Note: Unlike municipal libraries, the library boards of district libraries do not report to, nor take budgeting direction from, appointing authorities. Also, unlike a city budget that may have some leeway for funding priorities or special projects, the library district levy is restricted to the revenue allowed by its maximum property tax levy and some minor revenue sources.
Note: Unlike municipal libraries, the library boards of regional libraries do not report to, nor take budgeting direction from, appointing authorities. Also, unlike a city budget that may have some leeway for funding priorities or special projects, the regional library district levy is restricted to the revenue allowed by its maximum property tax levy and some minor revenue sources.
Expenses are apportioned between or among the contracting parties. See also RCW 27.12.080