What is a Library Worth?

At the last meeting of the Central Library Disposal Surplus Property Criteria Selection Committee, City Comptroller Dean Brasser mentioned that the City of Madison currently subsidizes the operating budget for the Madison Public Library System by $11 million annually. This translates into an annual cost to the city's taxpayers of $50 per capita.

If the City issues 20-year municipal bonds to finance $16 million of new library construction, this budget subsidy is estimated to increase by $1.2 million (or $5 per capita).

However, this modest increase in the library budget need not be borne by the taxpayer. If the investment creates new private development, the taxable property generates new tax revenues that will offset this cost.

Under our proposal, the new hotel, retail and parking facility is expected to generate an average of $2 million per year of property and room taxes (and more than $1.2 million in year one.) This represents a net benefit to the taxpayers.

In contrast, if the existing library is simply repaired for $16 million, no new tax base is created and the remodeled library will represent a new net cost to the taxpayers.

I've read a number of reports about the economic return from public libraries suggesting a return of $4 - $5 for every dollar spent... So libraries may well be one of the most productive investments that the public can make!

Curious for more? Here are some links you may appreciate:

Public Libraries - A Wise Investment - a return on investment study by the Colorado Public Library. I would guess that our community's relationship with the library may be consistent with these interesting survey results.

The Economic Contribution of Wisconsin Public Libraries to the Economy of Wisconsin by Northstar Economics. The title says it all.