Carnegie Library Lays Off Directors To Save Money

Lynn Blumenstein -- Library Journal, 9/23/2008

The Carnegie Library of Homestead (CLH), PA, one of only four libraries in the country built and endowed by philanthropist Andrew Carnegie, is facing hard times, having laid off its library director and executive director (the latter managed the fitness club and music hall sharing the facility).

CLH board president Dan Lloyd told LJ that the layoffs were a short-term solution to a budget crunch; the terminations save CLH $100,000. (The Pittsburgh Post-Gazette erroneously reported that the action was permanent.) Lloyd said the library relied too much on CLH’s endowment. Now board members are stepping up their money-making services offerings—the fitness and music facilities—in order to make CLH less reliant on the endowment. CLH is also ramping up fundraising efforts, promising that a donor will match every gift.

Endowment funding
Carnegie not only funded construction of the 34,000 square foot multipurpose facility (with 8000 square feet for library service) more than 110 years ago; he also funded its operation. (U.S. Steel managed CLH until the 1970s.) In recent years, said Lloyd, the directors relied too much on endowment funds to supplement the less-than-generous contributions from the four small communities it serves. which cut into principal. CLH’s annual budget is $680,000. Municipal contributions add up to less than $30,000 and about $75,000 comes from Allegheny County taxes.

Currently, five board members are helping an administrator manage the three facilities. Two library staffers have MLS degrees (at least one is required for continued state certification).

New revenues
The fitness club, which has a pool that Lloyd says “trained several Olympic athletes” in its day, has been upgraded. Formerly unused space now has modern weight-training equipment. Membership, at $32/month, has increased. More ambitiously, CLH has stepped up programming at the 1000-seat music hall, “a mini Carnegie Hall" (in Lloyd's words).

So far, CLH’s earnings from the music hall have been $60,000 in just six months and Lloyd predicts that revenue will be $150,000 for the first year. CLH’s only additional hire is a house manager for the events; the agent, promoters, and CLH each get a cut of the concert proceeds. Performers have ranged from Patti Smith to Emmylou Harris to various alt rock and metal bands. “It’s a major win for the community,” said Lloyd. “We put money up at first; but we made it happen.”