PA Trustees and Friends Institute April 27

1
Taxpayer Return on Investment (ROI)Pennsylvania
Public Libraries

• PA Trustees and Friends InstituteApril 27 28,
  2007May 4 5, 2007

2
Types of Return-on-Investment

• Effects on users
• Saves them time and money
• Improves quality of life
• Effects on education
• Aids teachers, students, lifelong learners
• Supports academic and school libraries

3
Types of Return-on-Investment

• Effects on the workplace
• Individual workers rely on public libraries
• Supports special libraries
• Economic effects on local communities
  Pennsylvania
• Ripple effects of library salaries, purchases
  in-library services
• Halo effect of spending by library visitors
  during trips to the public libraries

4
Study Methods

• Household telephone interviews (1,128 interviews)
• In-library survey of visitors (2,614 responses)
• Survey of organizations served by academic,
  school and special libraries (226)
• Follow-up survey of public libraries (129
  responses)
• REMI state input-output economic model
• State Library statistics

5
Example of Contingent Value Questions from PA
User Survey

• If there were no public library, what would you
  do to obtain the information on this visit?
• __ I would not bother to do anything.
• __ I need the information, but do not know where
  else to go.
• __ I would use another source

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Contingent Value Questions from PA User Survey

• How much time and money do you think it would
  take to use the alternative source?
• How far would you have had to travel to use this
  other source?
• Please estimate the additional costs of using
  this other source. This includes renting or
  buying it, or any other costs such as parking,
  public transportation and any other expenses.

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Some Results of Telephone Interviews
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Results Benefits of Having PA Public Libraries

• Net benefits to user (959 million)
• Net benefits to organization users
• (5 million)
• Value of needed information that might be lost
  (84 million)
• Salaries and wages contributed (180 million)

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Some Results of Telephone Interviews
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Results Benefits of Having PA Public Libraries
(Contd)

• In-state expenditures added to economy (68
  million)
• Revenue to in-library shops (1 million)
• Revenue to nearby businesses and services
  attributed to library use (80 million)
• Total Return-on-Investment (1,377 million)

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Some Results of Telephone Interviews
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Results Ratio of Taxpayer Return on Investment
in PA Public Libraries

• Return-on-Investment (ROI) 1,377 million
• Taxpayer Investment 249 million
• Ratio of ROI to taxpayer investment
• 5.5 to 1

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In-Library Survey of Visitors

• Principal observations
• Services used
• Purpose of visit
• Importance and outcomes of information use
• Time and cost to use the library
• Time and cost to use alternatives
• Other activities as part of trip
• Demographics

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Top Ten In-Person Services Used
15
Adult Access to the Internet from a Library
Computer
16
Remote Access to the Library
17
Purpose of Visits
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Survey of Organization Libraries Served

• Schools, universities and other organization were
  surveyed by mail
• Post-stratified by type of organization/library
• Awareness and use of PA Power Library
• Services used

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Organization Library Use Results

• School libraries
• About 3,700 public private schools
• 87 use public libraries extensively
• They use public libraries about 350,000 times a
  year
• Academic libraries
• 206 academic libraries
• 76 currently use public libraries
• They use public libraries about 12,000 times a
  year

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Organization Library Use Results

• Special libraries
• 669 special libraries identified
• 71 currently use public libraries
• These type of libraries utilize public libraries
  about 38,500 times a year

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Public Library Follow-up Results

• School age children constitute 39.0 of visits to
  public libraries.
• Tourists account for 4.5 of all visits.
• Non-English speaking users account for 3.2 of
  visits.
• Latchkey children constitute about 4.6 of visits.

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Economic Return-on-Investment

• Contingent valuation
• REMI economic input/output model

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Definition of Contingent Valuation

• Contingent Valuation is an economic method used
  to assess the benefits of non-priced goods and
  services (e.g., libraries or specific library
  services) by examining the implication of not
  having the product or service

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User Net Benefit

• If there were no public library, what would you
  do to obtain the information on this visit?
• The value of time depends on purpose of visit
  personal, work-related, teacher, student, adult
  with child, other

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User Benefits of Having PA Public Libraries

• Benefits to Users
• Users would have to pay much more in their time
  and/or money to obtain needed information
• User would have missed valuable information
  because they would not know where else to go
  obtain it. The value of this information would
  be lost.
• Organization users would have to pay more to
  obtain needed information
• Other Important User Benefits include quality of
  life issues, etc.

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Community/State Benefits of Having PA Public
Libraries

• Economic Benefits to the State
• Library salaries and wages contribute to
  communities
• Expenditures on in-state products and services
  add to the economy
• Revenue to in-library shops, etc. run by vendors
  contributes to the economy
• Many visits to libraries involve other activities
  such as shopping, going to restaurants, coffee
  shops, etc. Some revenue to these services is
  attributable to trips to the library

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Ratio of Taxpayer Return-on-Investment in PA
Public Libraries

• Return-on-Investment (ROI) 1,377 million
• Taxpayer Investment 249 million
• Ratio of ROI to taxpayer investment
• 5.5 to 1

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Ratio of Taxpayer Return-on-Investment in PA
Public Libraries

• Return-on-Investment (ROI) xxxx million
• Taxpayer Investment xxxx million
• Ratio of ROI to taxpayer investment
• x.x to 1

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Economic Benefits to the Community/State

• Wages and salaries (from state statistics)
• In-state expenditures (from public library
  follow-up survey)
• Vendor revenue from in-library shops (from
  follow-up survey)

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Economic Benefits to the Community/State

• Halo revenue to nearby services (from the
  In-library survey)
• - Total purchases times 23 based on British
  study

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General Comments from Users

• As a senior citizen it provides countless hours
  of reading enjoyment for me and for hundreds of
  other seniors.
• I love ordering books online and picking them up
  at our local library.
• This library provides new bestsellers,
  magazines, newspapers, videos and DVD's, plus
  Internet access. It has convenient hours and is
  open late.

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User Demographics
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User Demographics
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User Demographics
35
User Demographics
36
User Demographics
37
Services Use by Visitors
38
Services Use by Visitors
39
In-Library Access to the Internet
40
Type of Personal or Family Information
Needs/In-Person Visits
41
Services Used to Address Personal or Family
Information Needs
42
Reasons Libraries Are Used for Personal or Family
Needs
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Reasons Libraries Are Used for Personal or Family
Needs
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Attributes of Information Obtained for Personal
or Family Needs
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Outcomes for Personal or Family Information
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Comments from Users Personal Use of the Library

• I found information to use in renovating my
  bathroom. It will save me hundreds of dollars in
  comparison to having someone do the work.
• We have a new baby and the library provided us
  with many informative resources, books, DVD's,
  tapes magazines.
• The library allowed me to appreciate music that
  I couldn't easily listen to otherwise.
• I was able to locate medical information about
  my sick child.

47
Uses of the Library fro Recreation and
Entertainment
48
Ways Libraries Help With Recreational or
Information Needs
49
Comments from Users Recreational Use of Library

• The library keeps us from going crazy over the
  long, cold winter. It gives us the opportunity to
  read things we couldn't afford to buy.
• I use the library as a refuge and quiet place to
  read, relax, reflect and as a escape for
  Americas high-speed business culture.
• I was going on a trip and was able to borrow
  audio books, which helped me stay alert while
  driving.

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Adult Students/Level of Education
51
Top Services Used by Adult Students
52
Teachers/Level of Teaching
53
Teacher Purposes for Visits
54
Library Services Used by Teachers
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Comments from Users Educational Use of the
Library

• I have checked out many books that I needed for
  a class, instead of buying them at the
  bookstore.
• I go for computer use for the research
  databases for my graduate courses. Use of
  language tapes to prepare for trips is also
  appreciated.
• We love the childrens programs. It encourages
  reading, since we can't afford books.

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School Library Uses of the Public Library
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Reasons School Libraries Use Public Libraries
58
School Librarians/Research Outcomes
59
Where Public Library Visitors Work
60
Types of Work or Job-Related Information Needs
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Services Used by Organization Libraries
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Comments from Users Work Use of the Library

• Research (writing a book), used books, Internet
  and tapes.
• I researched prospective competitors and health
  issues. I also checked out books and used
  periodical database (online).
• The library was essential for the fundraising
  resource materials I found to help develop a
  non-profit program. There were extremely helpful
  staff available.
• Use of the computer is essential in my job
  search.

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Reasons Children Were Brought to the Library
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Lifelong Learners
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Why Lifelong Learners Use the Library