The Australian Library Journal

Valuing libraries

Ian McCallum and Sherrey Quinn

Margaret Trask was the best lecturer I had at library school. She confirmed my choice of profession, and inspired me to try to make a difference. By the time our paths crossed at the University of New South Wales (UNSW) in 1969, Margaret was well grounded in the practice of librarianship. She had worked in the State Library of New South Wales, government and private sector special libraries, and in the Penrith public library. She brought experience to teaching in a way that captivated her students and illuminated all she taught. She convinced us that libraries were worthwhile, that they had demonstrable value. (Ian McCallum, November 2003)

Whilst the value of libraries is a perennial topic, their economic value has been challenged with increasing force in recent times. Disciples of management theories espousing greater efficiency through 'reduction of the cost base,' or worse: 'we don't need libraries now we have the internet,' overlook the value of authoritative information carefully collected and organised by librarians and (usually) no one else.

At the overview level, OCLC (2003) has produced an entertaining document looking at libraries as (amongst other things) economic engines, logistics experts, valued destinations, global information suppliers, and as home to a 'vibrant and sizable profession' (p 6). Whilst interesting from a (US) public relations point of view, the material presented below is more specific.

Public library value

There are 1510 public libraries operated by 505 local government organisations in Australia - plus the state and national libraries (Australian Bureau of Statistics, 2001). The ABS data demonstrates that public libraries in Australia are a popular and well-used community resource.

• During 1999-2000 there were 99.4 million visits to public libraries in Australia, an eleven per cent increase on 1996-1997. By comparison, there were 11.8 million visits to botanic gardens and 79.4 million paid admissions to motion picture cinemas in the same period.
• Public libraries hold 54.3 million books and other items.
• They record 162 million loans per annum; an average of 1.7 loans per visit, and
• they cost about $800 million, ninety-one per cent sourced from government funding.

Further evidence is found in the AustraliaSCAN surveys carried out by Quantum Market Research (2003). At the instigation of librariesvictoria, AustraliaSCAN included questions on public libraries in their surveys in 2001, 2002 and 2003. Findings include:

• fifty-nine per cent of the Australian population carry a library card in 2003;
• public libraries had the highest satisfaction rating of any public service queried and the lowest dissatisfaction;
• regional and rural library users are among the highest users of their local library service;
• many services are used at a library, but borrowing books remains the core service used;
• people visit their local library more often than the video store

The 2003 Report noted (p3) that:

In the context of other public services, public libraries rank with Australia Post and pharmacies as the 'gold standard'. There is also a gathering body of evidence which suggests that this reflects a growing distinction in the public's mind between those services which are seen to have retained their old-fashioned, human touch (good) and those that have discarded these values in favour of new soulless ideologies of de-regulation, privatisation and market forces.

Community support for libraries is also indicated in the submissions to the recent Senate Inquiry into the Role of Libraries in the Online Environment. This Inquiry (whose terms of reference included public, university and research libraries) attracted 155 submissions, held fifteen public hearings and heard sixty-seven witnesses (Senate Committee 2003).

Numerous studies attest to the social and community benefits of public libraries. The role of public libraries in society is broad - they provide:

• information resources for everyday use by individuals, for recreation, and to support formal and informal education and lifelong learning;
• access to government and other electronically-delivered information, available from sources beyond the walls of the library;
• information, referral services and facilities which contribute to community development;
• safe and welcoming places for social contact, and
• free, unfettered and equitable access to services and resources by all members of the community.

Public libraries:

• promote literacy;
• stimulate initiative and enhance quality of life;
• introduce and develop skills in using information technology, and
• foster research and information seeking skills.

Important recent studies of public libraries in Australia that should be noted include the surveys of users and non-users of public and State libraries for the Libraries Working Group of the Cultural Ministers' Council, and the subsequent strategic and policy framework (Mercer 1995; Mercer and Smith 1996). In that these studies do not deal with issues of economic value they are not discussed further in this paper. We summarise below some recent, specific studies into public library value, including reviews and research.

Griffiths and King Studies (1994, 2000)

Griffiths and King (1994) reviewed ten years' work in measuring the usefulness and value of special libraries and public libraries, and reviewed surveys of the information-seeking behaviour of professionals. They devised a framework for assessing libraries; the value and worth of library services; and the impact of library use. Among the data they collected were: value/price paid to use libraries; average time and dollars spent using various library services; use of public library services; cost and worth of public libraries; relationship of distance and number of visits to public libraries; impact of library use on achieving company goals; purposes of reading; journal article readings (various aspects); productivity of professionals; public library uses (purposes and consequences). From all these they derived values for library activities.

Donald King continued this work, so that in the special libraries field there is now a substantial body of research into financial value. In 2000 the Special Libraries Association (SLA) published a landmark study on the transition from printed to electronic journals which included a chapter on the economics of libraries (Tenopir and King 2000). The authors found that in a scientific research context 'it actually would cost approximately 7.2 times more not to have a library than it does to have one' (p208).

The Florida Study (2001)

In a study of public libraries in Florida (McClure at al 2001), survey participants were asked to indicate in dollar terms the value to them of individual library programs and services. The study team then calculated overall user benefits by breaking down each service and deriving an average retail price for that service. The total of these calculations was taken to equal the total benefits received by library users. Taxpayer investment was subtracted from total benefits to give a total return on investment. The key finding was a return of US$6.27 for every tax dollar invested.

Canadian studies

Based on observations that people using public libraries also tend to include shopping with their visits to the library, research in Canada by Fitch and Warner (1997) focused on the role of libraries in promoting the economic well-being of local businesses. The main finding was that more than seventy-five per cent of library users combined trips to the library with the purchase of goods and services to an annual value of C$500-600 from retail shops close to the library. Fitch and Warner also found that public libraries increase the economic value of a community by their capacity to draw businesses, home buyers, tourists and others to the locale, and contribute to the local economy through their annual operating budgets and capital projects.

An earlier study (Sawyer 1996) demonstrated that Ontario public libraries have a direct and indirect impact on the Ontario economy, measured in terms of gross domestic product. Benefits included services and information for business, lifelong learners, and job seekers. Sawyer suggests a framework to help public libraries promote their economic impact and contribution to economic growth within the community.

In 1998 the Southern Ontario Library Service (SOLS) published The library's contribution to your community: A resource manual for libraries to document their social and economic contribution to the local community (dmA Planning and Management Services 1998). This manual:

• is designed for self-use by public libraries;
• identifies twelve social and nine economic benefits;
• describes the information which will document how the library delivers each of the benefits;
• provides tools for collecting the information needed;
• outlines a strategy for communicating value, and
• includes an extensive bibliography of related publications.

The manual has been distributed to all libraries in Ontario and is available for purchase by other libraries: http://www.library.on.ca/publications/LCTYC/

Case studies on use of this manual have been published on the SOLS website and in Kostiak (2002).

St Louis Public Library Services Valuation Study (1996)

The St Louis Public Library (SLPL) Services Valuation Study team produced a handy 'how to quantify the benefits of your library' guide, complete with a very useful table of priced individual services (Holt, 2001; Holt, Elliott and Dussold 1996; Holt, Elliott and Moore, 1998; Holt, Elliott and Moore, 1999). In applying the methodology the research team concluded: 'according to federally-sponsored cost-benefit research, SLPL patrons reported receiving at least US$2.53 to $5.00 in benefits for each dollar of taxes supporting library operations' (Holt 2001, slide 9). When considered from the point of view of the library (rather than the patron), Holt's team was able to claim that 'on average for every dollar the public has invested in library services, the direct benefits just to library users is $4. In St Louis, the public is getting a good return on its investment in its public libraries.'(Holt, Elliott and Moore 1999, p108).

Loughborough University assessment of value and impact (2001)

A year-long research project in the Department of Information Science at Loughborough University attempted a quantitative evaluation of the economic value of public libraries. The research included assembling and analysing as much evidence as possible from the mass of statistical circumstantial evidence that had built up over the years. The researchers were not primarily concerned with ways in which public libraries contributed to the local economy and provided business information. Instead, they saw 'economic value' as meaning the benefit of the whole library service in economic terms - how much better off are library users than they would be if no library existed?

The key finding was an estimation that 'public libraries produce £98m more value than they cost to provide - a net gain of 13.6 per cent' (before external benefits to society are taken into account).

Borrowing books, the dominant use of the public library, allows the user to get the benefit at a fraction of what it would cost to buy the book, or to read books that would be too expensive to buy. This takes different forms for people according to their education, wealth, age and personal interest. The result is a mixture of educational, informative, cultural and recreational benefit. (Morris, Hawkins and Sumsion 2001: p303).

The full report is summarised in Hawkins, Morris & Sumsion (2001a & b).

More recently, the authors outline the theory underlying the economic value of library benefits and review other research. They show that the methodology can be extended from public libraries to a parliamentary library and to the economic and social costs of crime (Sumsion, Hawkins and Morris 2003).

Sciacca study of public libraries and economic development (1998)

A research study involving 100 randomly selected public libraries in Illinois found a transformation in the level of awareness and change in attitude towards public library involvement in economic development (Sciacca 1998). Sciacca comments (p80) '...it has become somewhat commonplace to hear of librarians working closely with local governing officials, small business owners, entrepreneurs and economic development agency officials, providing needed information in support of the economic advancement of their communities.' With libraries' well-being linked to the economic success of the communities they serve, it makes sense for them to seek involvement in economic development initiatives.

Several opportunities for public libraries to increase their support of local economic development activities were identified (Sciacca 1998, p81-2):

• library administrators should formally recognise the library's role and endorse and recognise staff involvement;
• libraries should be assertive in ensuring that their contributions are recognised and take credit for successful outcomes;
• direct contact with the local business community places the public library in an excellent position to work with small business (and expand employment);
• libraries have an important information clearinghouse role where communities have multiple bodies working on economic development;
• libraries should develop basic reference collections of materials useful to the business community. In many case it was found that such materials were already held;
• libraries have good locations, knowledgeable staff, convenient hours, adequate parking, comfortable work space - all amenities making the library an attractive place as the community focal point for information for business and economic development.

Australian research - public libraries

In an earlier project we stated that 'Determining and promoting the value of public libraries is a chronically underdone activity in Australia' (McCallum and Quinn 2001, p18). There is at present no concerted or single national focus for this, though some initiatives, including local and regional ones, do exist. The nascent Public Libraries Australia (PLA) may provide the focus. (Further information on PLA may be found at its website.)

The Australian Library and Information Association (ALIA) is an advocate for all libraries - including public libraries. In its submission to the recent Senate Inquiry into the Role of Libraries in the Online Environment, ALIA stated its belief '... that it is in the national interest that Australian governments support and facilitate the role of libraries as providers of public information in the online environment,' and provided evidence to support this position (ALIA 2002, Covering letter to the submission: Submission to the Senate Inquiry into the Role of Libraries in the Online Environment.

Broadbent, M and Lofgren, H (1991) Priorities, performance and benefits: an exploratory study of library and information units. Melbourne: CIRCIT Ltd and ACLIS.

Calvert, P (2002) ' 'Valuing' public libraries', Library Link: Library Management and Information Services, December 2002: http://miranda.emeraldinsight.com/vl=2406933/cl=36/nw=1/rpsv/librarylink/management/dec02.htm (viewed 14 November 2003)

Cram, J (1992) 'The right twig for an eagle's nest', Australian Library Journal, 41 (1): pp31-39.

Cram, J (1995) 'Moving from cost centre to profitable investment: managing the perception of a library's worth', Asia-Pacific Library Conference: Conference Proceedings, vol 1: pp177-189. Brisbane: State Library of Queensland. Also available at:

Drum, F and Anderson, S (2003) 'Valuing our clients: a report on the client survey at NSW Agriculture Library Services', Australian Library Journal 52 [1]: pp19-30

Fitch, L and Warner, J (1997) Dividends: the value of public libraries in Canada. Canada Book and Periodical Council.

Griffiths, J-M and King, DW (1993) Special libraries: increasing the information edge. Washington, DC: Special Libraries Association

Griffiths, J-M and King, DW (1994) 'Libraries: the undiscovered national resource', The value and impact of information. London, Bowker-Saur, 1994. (British Library Research: Information Policy Issues) pp79-116.

Haratsis, B (1995) 'Justifying the economic value of public libraries in a turbulent local government environment', Public Libraries - what are they worth? Proceedings of the 2nd National Public Libraries Conference, Sydney, November 1995. Auslib Press, 1996: pp96-109.

Hawkins, M, Morris, A, and Sumsion, J (2001a) 'What is it worth?' [The economic value of public libraries] Public Library Journal - Public Libraries Group, 16 [2] Summer: 35-37.

Hawkins, M, Morris, A, and Sumsion, J (2001b) 'The economic value of public libraries', Australasian Public Libraries and Information Services, 14 [3], September: pp90-96.

Holt, GE (2001) 'Public library benefits valuation study'. Paper delivered at Powerful Forces: LIANZA Conference, Rotorua, New Zealand, 20 September, 2001.

Holt, GE, Elliott, D and Dussold, C (1996) 'A framework for evaluating public investment in urban libraries', The bottom line: managing library finances, 9 [4]: pp3-13.

Holt, GE, Elliott, D and Moore, A (1998) Placing a value on public library services [The St. Louis Public Library (SLPL) Services Valuation Study]. Report published at: http://www.slpl.lib.mo.us/libsrc/restoc.htm (viewed 14 November 2003)

Holt, GE, Elliott, D and Moore, A (1999) 'Placing a value on public library services', Public libraries, March/April 1999: pp98-108.

Johnstone, L (1998) Public libraries and shopping centres. Brisbane: State Library of Queensland.

Keyes, AM (1995) 'The value of the special library; review and analysis', Special Libraries, 86 [3] Summer: pp172-187.

Kostiak, A (2002) 'Valuing your public library: the experience of the Barrie Public Library, Ontario, Canada' The Bottom Line: Managing Library Finances 15 [4]:pp159-162.

Matarazzo, JM and Prusak, L (1995) The value of corporate libraries: findings from a 1995 survey of senior management. Washington, DC: Special Libraries Association

Matthews, JR (2002) The bottom line: determining and communicating the value of the special library. Westport, Conn.: Libraries Unlimited

McCallum, I and Quinn, S (2001) APLN: the will - or the last testament? Investigation of the business case for the creation of a new national body to represent and promote the interests of public libraries in Australia: Final Report to the Council of Australian State Libraries, by Libraries Alive P/L, 2001.

McClure, C, Fraser, B, Nelson, TW, and Robbins, JB (2001) Economic benefits and impacts from public libraries in the State of Florida. Final report to the State of Florida, Division of Library and Information Services. Florida State University Information Use Management and Policy Institute. November 2000, revised January 2001

Mercer, C (1995) Navigating the economy of knowledge; a national survey of users and non-users of State and public libraries prepared for the Libraries Working Group of the Cultural Ministers' Council by the Institute for Cultural Policy Studies, Griffith University, March 1995.

Mercer, C and Smith, M (1996) 2020 vision: towards the libraries of the future; a strategic agenda and policy framework for Australia's State and public libraries. Prepared for the Libraries Working Group of the Cultural Ministers' Council for the Australian Key Centre for Cultural and Media Policy, September 1996. Canberra: Commonwealth of Australia

Missingham, R (1998) 'A science library survey - CSIRO Wildlife and Ecology'. Australian Special Libraries 31 [2]: pp27-31

Morris, A, Hawkins, M. and Sumsion, J (2001) The economic value of public libraries. Resource: The Council for Museums, Archives and Libraries. (Library and Information Commission Research Report, no 89, 2001), 374p.

OCLC Inc. (2003) Libraries: how they stack up.

Poll, R (2003) 'Measuring impact and outcome of libraries', Performance Measurement and Metrics, 4 [1]: pp5-12.

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Quantum Market Research (2003). AustraliaSCAN: Libraries top-line report, June 2003. Prepared for librariesvictoria. Albert Park: Quantum Research. Previous surveys covered the years 2001 and 2002.

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Biographical information

Ian McCallum and Sherrey Quinn say they were fortunate to have been studying librarianship at UNSW at the same time Margaret Trask was teaching it. Thirty years on, Ian and Sherrey run the consulting company Libraries Alive! and are heavily involved in library leadership training through the Aurora Foundation. Like Margaret, they are committed to promoting the value of libraries, teaching what they practice, and contributing to their chosen profession.