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THE TWILIGHT ZONE OF LIBRARY BUDGETING

THE TWILIGHT ZONE OF LIBRARY BUDGETING EDITORIAL THE TWILIGHT ZONE OF LIBRARY BUDGETING It is alarming that the budget the political environment. Here, the tions of organizational policy. This technique which is almost univer­ library manager is called upon to includes sound cash management, the sally criticized as ineffective is the reconcile fiscal action with service development and implementation of one almost universally used by li­ imperatives. The success of that an investment program, and review­ braries. Few library managers use in­ reckoning depends largely upon the ing purchasing policies for maxi­ novative techniques like Zero-Based mechanisms in place for measuring mum discounts. Safeguards have to Budgeting (ZBB) or the Planning and evaluating—and pinpointing re­ b e established against the misuse of Programming Budget System (PPBS) sponsibility for results. funds. Finances must be recorded and for financial management. Instead, reported in accordance with gener­ Why aren't more library managers most library budgets are just pre­ ally accepted accounting principles. using innovative budgeting tech­ pared on an incremental basis. In es­ niques? Tim Moffat's investigation of Library managers need a combi­ sence, this means that a constant— M.L.S. programs offering education nation of budget and financial de­ usually an inflationary factor—is ap­ in financial management, "Making velopmen t competencies to be plied to modify the previous year's Leaders in Library Finance," o n page effective. Many lack these skills be­ figures. Many library managers seem 16, gives one plausible reason: they cause financial management is given to consider such budgeting to be are never taught any! He found that short shrift within most M.L.S. pro­ synonymou s with financial most curriculums simply introduce grams. Perhaps this results from the management. budgeting in a general management unproductive argument that differ­ course. Little preparation for a role entiate s graduate education from Using this technique, the current in financial management is provided professional skill development. But budge t is considered solely as a to perspective library managers. it is obvious in today's complex world spending-control mechanism. Etched that the two are not mutually exclu­ in an historical perspective, it is based This emphasis on the traditional sive. Professional education is a mat­ on past priorities or on the codifi­ budget is no t sufficient. In fact, bud­ ter of balancing the two. cation of past fiscal performance. It geting itself—taught in a vacuum— neither links the budget to the real­ contributes to the selection of tech­ Education for librarianship must ities of the present nor to the pos­ niques with no regard for their abil­ expose future library managers to a sibilities of the future. ity to enhance overall financial wide r range of budgeting tech­ management. niques—like ZBB and PPBS. More A well-conceived budget should be viewed as the backbone of any While effective financial manage­ important, these techniques must be library's plan of action. Not only does ment encompasses all of the ele­ placed in the broader, more com­ prehensive context of sound finan­ such a budget state the library's fi­ ment s of good budgeting, its nancial position, funding objectives, composite goes far beyond those of cial management. It's time for library and targets, but it puts price tags on the budget alone. Good financial educators to assume their responsi­ bility for moving library financial alternative strategies to reach those management requires understand­ targets. ing the environmental context in management out of the twilight zone. which the budget is set. Goals and An effective budget should also be objectives are quantified. This infor­ used as part of a regular communi­ mation is used not only to measure cation cycle demonstrating the ac­ results and supply cost figures, but countability of the library's managers. to determine how expenditures will In other words, the planning aspects be scheduled and where the money of budgeting are fully integrated with will come from to meet that schedule. its control aspects. The incremental approach of the Will money be available from tra­ line-item budget discourages this kind ditiona l funding sources when of integration; PPBS and ZZB en­ needed? If new sources must be courage it. Both link fiscal priorities sought, what will these be? to compelling, cost-effective service All of this requires developing fis­ alternatives. cal resources at the least cost to the Accountability takes the budget out organization. It means seeking every of the crisp world of the balance opportunity to make money from sheet and places it in the middle of money on hand—within the limita­ Volume 1, Number 3 THE BOTTOM LINE 3 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Bottom Line: Managing Library Finances Emerald Publishing

THE TWILIGHT ZONE OF LIBRARY BUDGETING

The Bottom Line: Managing Library Finances , Volume 1 (3): 1 – Mar 1, 1988
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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0888-045X
DOI
10.1108/eb025120
Publisher site
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Abstract

EDITORIAL THE TWILIGHT ZONE OF LIBRARY BUDGETING It is alarming that the budget the political environment. Here, the tions of organizational policy. This technique which is almost univer­ library manager is called upon to includes sound cash management, the sally criticized as ineffective is the reconcile fiscal action with service development and implementation of one almost universally used by li­ imperatives. The success of that an investment program, and review­ braries. Few library managers use in­ reckoning depends largely upon the ing purchasing policies for maxi­ novative techniques like Zero-Based mechanisms in place for measuring mum discounts. Safeguards have to Budgeting (ZBB) or the Planning and evaluating—and pinpointing re­ b e established against the misuse of Programming Budget System (PPBS) sponsibility for results. funds. Finances must be recorded and for financial management. Instead, reported in accordance with gener­ Why aren't more library managers most library budgets are just pre­ ally accepted accounting principles. using innovative budgeting tech­ pared on an incremental basis. In es­ niques? Tim Moffat's investigation of Library managers need a combi­ sence, this means that a constant— M.L.S. programs offering education nation of budget and financial de­ usually an inflationary factor—is ap­ in financial management, "Making velopmen t competencies to be plied to modify the previous year's Leaders in Library Finance," o n page effective. Many lack these skills be­ figures. Many library managers seem 16, gives one plausible reason: they cause financial management is given to consider such budgeting to be are never taught any! He found that short shrift within most M.L.S. pro­ synonymou s with financial most curriculums simply introduce grams. Perhaps this results from the management. budgeting in a general management unproductive argument that differ­ course. Little preparation for a role entiate s graduate education from Using this technique, the current in financial management is provided professional skill development. But budge t is considered solely as a to perspective library managers. it is obvious in today's complex world spending-control mechanism. Etched that the two are not mutually exclu­ in an historical perspective, it is based This emphasis on the traditional sive. Professional education is a mat­ on past priorities or on the codifi­ budget is no t sufficient. In fact, bud­ ter of balancing the two. cation of past fiscal performance. It geting itself—taught in a vacuum— neither links the budget to the real­ contributes to the selection of tech­ Education for librarianship must ities of the present nor to the pos­ niques with no regard for their abil­ expose future library managers to a sibilities of the future. ity to enhance overall financial wide r range of budgeting tech­ management. niques—like ZBB and PPBS. More A well-conceived budget should be viewed as the backbone of any While effective financial manage­ important, these techniques must be library's plan of action. Not only does ment encompasses all of the ele­ placed in the broader, more com­ prehensive context of sound finan­ such a budget state the library's fi­ ment s of good budgeting, its nancial position, funding objectives, composite goes far beyond those of cial management. It's time for library and targets, but it puts price tags on the budget alone. Good financial educators to assume their responsi­ bility for moving library financial alternative strategies to reach those management requires understand­ targets. ing the environmental context in management out of the twilight zone. which the budget is set. Goals and An effective budget should also be objectives are quantified. This infor­ used as part of a regular communi­ mation is used not only to measure cation cycle demonstrating the ac­ results and supply cost figures, but countability of the library's managers. to determine how expenditures will In other words, the planning aspects be scheduled and where the money of budgeting are fully integrated with will come from to meet that schedule. its control aspects. The incremental approach of the Will money be available from tra­ line-item budget discourages this kind ditiona l funding sources when of integration; PPBS and ZZB en­ needed? If new sources must be courage it. Both link fiscal priorities sought, what will these be? to compelling, cost-effective service All of this requires developing fis­ alternatives. cal resources at the least cost to the Accountability takes the budget out organization. It means seeking every of the crisp world of the balance opportunity to make money from sheet and places it in the middle of money on hand—within the limita­ Volume 1, Number 3 THE BOTTOM LINE 3

Journal

The Bottom Line: Managing Library Finances – Emerald Publishing

Published: Mar 1, 1988

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