Taxpayer
Return on Investment
in Florida Public Libraries:
Summary Report
September 2004
José-Marie Griffiths
University of Pittsburgh & University of North Carolina at Chapel Hill
Donald W. King
Christinger Tomer
University of Pittsburgh
Thomas Lynch
Julie Harrington
Florida State University
Prepared for
State Library and Archives of FloridaACK
[ For every tax dollar received, Florida public libraries provide $8.32 in value.
1http://dlis.dos.state.fl.us/bld/roi/pdfs/ROISummaryReport.pdf
Download the brochure.
3.16MB PDF
(Text-only PDF)
Taxpayer Return on Investment in Florida Public Libraries (2010)
The statewide return on investment increased from $6.54 in 2004 to $8.32 in 2008. The current study also examines the social value of public libraries and provides a return on investment calculation for each county.
KEY FINDINGS
Florida Libraries Support a Strong Economy
The measurement of return-on-investment (ROI) has been applied to many different types of
organizations and community resources. While common in the for-profit sector, the application of
benefit/cost, cost-effectiveness, impact and return-on-investment measures to libraries, museums,
schools and colleges, parks, etc., has lagged behind considerably. Part of the difficulty has been in
quantifying benefits from non-priced goods and services that can differ from use to use, user to
user, as well as from library to library (as their mix of service offerings vary). In today’s climate
of strained budgets and pressures for increased accountability and transparency, the need for clear
and accurate statements of how public monies are allocated and used, and the resulting benefits or
outcomes, is paramount in ensuring continued investment.
This Summary Report describes a comprehensive study to assess taxpayer return-on-investment
in Florida’s public libraries. The study used a variety of data collection and analysis methods
including the public library annual data reports to the State Library and Archives of Florida, a
statewide household telephone survey of adults, in-library surveys of adults, a follow-up survey
of the libraries, surveys of organizations (e.g., businesses, schools, etc.) and an input-output
econometric model (REMI). Public libraries allow users to share knowledge and services at a cost
to them as taxpayers and in the time they spend using the libraries; however, all taxpayers in
Florida benefit from the public libraries through their considerable contribution to education, the
economy, tourism, retirement, quality of life, and so on. There are many ways to determine how
public libraries contribute to the State’s economy and how taxpayers achieve a return on their
investment. This study examined several approaches to considering returns on public library
availability and use and found they all show substantial returns exceeding taxpayer investment.
Key Findings
Overall, Florida’s public libraries return $6.54 for every $1.00 invested from all
sources.
The total revenue investment in Florida’s public libraries is $449 million.
The total economic return attributable to the existence of the public libraries is
$2.9 billion — based on an analysis of what would happen if the public libraries
ceased to exist: includes the net benefits (added costs to use alternatives), the
benefits that would be lost because users would not bother to use alternatives, and
revenues that would be lost by vendors, contractors, etc.
Using State Library and Archives of Florida data and data from the surveys described
above, the REMI (Regional Economic Modeling Inc.) model looked at the initial public
investment in public libraries ($443 million
2
) and considered the implications of not
funding the public libraries, but of redistributing the money to alternative government
spending activities. Projecting forward over 32 years (2004-2035), the REMI model
indicated that if funding for public libraries was reallocated across Florida’s government
sectors, the state economy would result in a net decline of $5.6 billion in wages and
68,700 in jobs.
For every $6,448 spent on public libraries from public funding sources (federal,
state and local) in Florida, one job is created.
For every dollar of public support spent on public libraries in Florida, GRP
increases by $9.08
For every dollar of public support spent on public libraries in Florida, income
(wages) increases by $12.66
Figure 2: Florida GRP Increases from Public
Support of Libraries
Figure 3: Income Increases from Public Support
of Florida Public Libraries
2
Note that this figure does not include $6 million in state funds to the Multitype Library Cooperatives.III
Benefit (B) to Cost (C) ratios are estimated from th
FLORIDA’S PUBLIC LIBRARIES CONTRIBUTE $2.1 BILLION
TO THE WORKPLACE
There are 6.2 million uses of Florida’s public libraries by individuals for work-related
purposes. Additional uses are made by government, businesses and other for-profit and
not-for-profit organization librarians accessing 8,700 documents and a wide range of
services on behalf of their organizations. In all, 67 percent of business libraries and 71
percent of government and non-profit libraries in Florida take advantage of public library
resources and services.
The use of Florida’s public libraries for work-related purposes yields substantial use
benefits to the workplace, both in terms of quantifiable economic benefits (time and
monetary savings) and other benefits.
Figure 8: Direct Use Benefits of Public Libraries to the Workplace
Public libraries contribute to the economic condition of the workplace both directly and
indirectly. Direct economic benefits include time and monetary savings from not having
to use alternatives (net benefit of $835 million), from use of the resources and services
provided by the library (use benefit of $514 million in time and money saved), and from
financial flows to Florida businesses (direct community benefit of $784 million). These
economic contributions to the workplace total $2.1 billion per year.
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Lots more info if you down load the PDF..Hass Center did a study very similar in scope and found close to the same results.