Public Libraries and Privatization and Outsourcing -– Questions and Resources

The following FAQ and list of suggested resources are compiled to assist public and association libraries in New York State with questions about privatization and outsourcing of public library services.  

Library boards which are discussing outsourcing or privatization of library services are encouraged to review this site and “Keeping Public Libraries Public: a Checklist for Communities Considering Privatization of Public Libraries,external link opens in a new window” American Library Association, June 2011; revised September 2011.

Contents

Definitions

Frequently Asked Questions

Sources for Additional Information

Definitions

What is “outsourcing”?

The term “outsourcing” as used on this website describes the process of a public library which purchases some services from a vendor, contractor, independent worker or other provider.

What is “privatization”?

The term “privatized” as used on this website describes a non-public organization or business which may provide some services similar to those provided by a public library. However, in New York State, such an entity is not a public agency in any respect.

NOTE: The term Library is restricted under NYS Education Law to only those organizations which may be chartered by the Board of Regents as a public or association library or are admitted into the University of the State of New York.  Because of this, there is no such entity as a privatized library which was formerly a public or association library in New York State.  NYS Education law does not provide any mechanism for a former public or association library which does not have a board of trustees and a director who has been hired by the board to receive public funds.

A public or association library may not be converted into a private business while still retaining its not-for-profit education corporation status.

Frequently Asked Questions

What is ALA policy related to privatization?

ALA affirms that publicly funded libraries should remain directly accountable to the publics they serve. Therefore, the American Library Association opposes the shifting of policy making and management oversight of library services from the public to the private for-profit sector. (Adopted by the ALA Council in 2001)

More information on American Library Association Policy Statements and Reports on Privatizationexternal link opens in a new window

What Factors Should Communities and Library Boards Consider In Decisions about Privatization and Outsourcing?

  • Potential Competitors - Is the service proposed for privatization or outsourcing performed by the private sector or likely to be? If so, will the local marketplace have enough potential vendors, both now and in the foreseeable future, to assure competition?
  • Understand Problems with the Current Process - The impetus for outsourcing or privatization is usually dissatisfaction with current operation and/or costs. It is important to analyze the problem. What are the internal inefficiencies driving current costs? Could the operation be improved?  An in-house, streamlined operation may be the most cost-effective alternative. An analysis of the problem is also necessary for fair treatment of employees. Employee input at this stage can be very helpful.
  • Determine Costs of In-House and Outsourcing Alternatives - Activity-based costs are indispensable in making decisions about outsourcing of activities.  Include transition expenses in cost projections. Cost studies, identification of vendors, and contract negotiation, drafting, and monitoring are all necessary expenses in this process.

Is Public Input Important to the Decision to Privatize or Outsource?

It is important to invite broad public input from the community early in the process.  The basis for the library board’s decision to seek outsourcing or privatization should be stated clearly and publicly. The library board should share a projected timetable, report regularly on progress and invite additional public input during the data gathering and decision-making process.

What State Laws Impact Privatization Decisions in New York?

Library boards that are considering outsourcing or privatizing the management of the library or significant services are advised to discuss potential impacts with their public library system.  Library boards should also seek advice of local counsel about the legal requirements for establishment, funding and operation of a public or association library in New York State.

State Education law and regulations related to public and association libraries

Who Is Responsible for Making a Library’s Decisions about Outsourcing or Privatization?

All public and association libraries in New York are governed by either an appointed or elected library board of trustees. 

A trustee is a person to whom property is legally committed in trust. A library trustee's commitment is to both the physical property and resources of the library and the services it provides. The library board has the final responsibility to see that its library provides the best possible service to its community. (from: Handbook for Library Trustees of New York State, 2015)

Decisions concerning the outsourcing of library services are the responsibility of the library board. Some relevant areas of Education Law related to the governance and operation of public and association libraries in New York State and the powers and responsibilities of trustees include, but are not limited to:

  • §226 Powers of trustees of institutions – basic powers and duties of all library boards of trustees are defined
  • §253 Public and association libraries and museums
  • §254 Standards of library service
  • §255 Establishment of a public library
  • §256 Contracts
  • §259 Library taxes
  • §260 Trustees
  • §260-a Meetings of board of trustees
  • §261 Incorporation
  • §262 Use of public and Indian libraries

How would Privatization or Outsourcing Impact the Library’s Ability to Meet Minimum Standards of Service?

Library boards are advised to carefully consider the impact of outsourcing and privatization on community needs and standards as well as NYS Minimum Standards for Public Libraries.  In order to remain eligible for local and state public funds, every public and association library in New York State must comply with these minimum standards of library service.   For information about these requirements see:

What Impact might Privatization have on a library’s right to State funding?

Library boards which determine outsourcing of services is in the best interest of the library and the community must consider the impact on the library’s eligibility for local, state, federal or private funding.

Since there is no provision in NYS Education for a library that does not have a board of trustees and a director who is an employee of the board, no fully “privatized library” could exist. Such an organization might provide library-like materials and services but would not be considered a library under NYS law and could not legally accept public funds as a library.

Currently State funding for public and association libraries may include annual local library services aid, public library construction grants, NYS adult and family literacy grants and others. Central or co-central libraries may receive State funds through the public library system to provide central library services. 

To receive State funds, libraries must:

  • be in good standing
  • be chartered by the Regents or accepted into the University of the State of NY
  • be registered by the State Education Department 
  • be a member of their public library system. 

Many systems submit comprehensive applications for federal E-rate telecommunications discounts on behalf of their members which bring millions of dollars in discounts to eligible local libraries.  Many systems also include member libraries in grant projects funded through federal Library Services and Technology Act funds administered by the State Library.  Libraries which accept donations and have 501(c) (3) status must abide by IRS regulations.

What Impact would Privatization have on membership in the Public Library System?

Library boards will want to consider the potential impact that decisions related to privatization or outsourcing may have on library customers. If the library is no longer able to fulfill the requirements and responsibilities of membership in the public library system and the statewide library network, library users will not receive the same level of service.  Public Library System services that library customers benefit from include:

  • Free direct access to all other libraries in the system’s service area;
  • Interlibrary loan and delivery,
  • Seamless access to shared integrated library computer systems and online e-resources in the library and from remote locations such as home, school or work.
  • High quality training and resources to maintain highly skilled library staff and knowledgeable trustees.
  • Expert librarian consultant services in key areas such as reference and research services, technology, youth services and outreach to special populations.
  •  High quality shared public programming and education services for all ages
  • Targeted library services and materials for special populations including the elderly, persons with disabilities, the homebound, persons living in institutions, persons who are educationally disadvantaged, the unemployed and under-employed, people in need of literacy services, people living in areas that are geographically isolated.
  • Access to statewide services provided by the State Library such as the New York Online Virtual Library (NOVELNY) and Summer Reading at New York Libraries.

What Happens After a Library Board Decides to Outsource?

Once a library board decides which library services will be outsourced, it is important to fully advertise the contracting opportunity. All local and State contracting requirements must be followed.  The basis for the decision to outsource should be stated clearly and publicly.

What Happens Once the Vendor is Selected?

Once the vendor is selected, all cost information, the choice of vendor, and the contract itself should be made public. The contract should state the library board’s goals clearly and describe how performance will be measured and monitored. The Library board should closely monitor vendor performance and budget.

What Companies in the United States Offer For-Profit, Library Management Services?

One such company is LSSI - Library Systems and Servicesexternal link opens in a new window, LLC, headquartered in Germantown, MD*.
*NOTE: Appearance on this page does not constitute an endorsement or recommendation of any company’s services by the New York State Library.

Where Can I Go for More Information?

Sources for Additional Information

Meg Hartmann. (2011). “Show Me the Money: Privatization and the Public Libraryexternal link opens in a new window.” ILAReporter, 29(1), 4-7. 

A first hand account by the Oak Brook Illinois Public Library director.  The library board considered several options for the financially troubled library, including Library Systems & Services (LSSI).  The board ultimately decided against privatization.  Hartmann wrote this article to describe her experiences dealing with LSSI. 

Jamie E. Helgren and Linda Hofschire. (July 2011) "Who's the Boss?external link opens in a new window" American Libraries.

A follow-up article to a survey conducted by The Library Research Service (LRS), a unit of the Colorado State Library.  The survey was intended to gauge librarians’ perceptions of private for-profit management of libraries compared to the traditional public library model.

Heather Hill. (May 2009) "Outsourcing the Public Library: A Critical Discourse Analysisexternal link opens in a new window," PhD dissertation present to the Faculty of the Graduate School at the University of Missouri, 129 pgs.

Hill’s doctoral dissertation, argues against the privatization of public libraries. 

Heather Hill. (2012). “A Look at Public Library Management Outsourcingexternal link opens in a new window.” Public Libraries, 51(3), 42-47. 

As libraries deal with significant budget cuts, there has been a growing discussion about public library outsourcing. This article explores the choice some communities and library boards are making to outsource services and what outsourcing means for both the library staff and the municipality it serves.

Jane Jerrard, Nancy Bolt and Karen Strege (Fall 2011). Privatizing Librariesexternal link opens in a new window.  ALA Editions: Special Reports. http://www.alastore.ala.org/detail.aspx?ID=3431

Soon to be published by ALA Special Reports, the history of privatized public services and public library privatization is examined.  The report also offers an in-depth look at services, patron and staff satisfaction and legal issues that result from for-profit takeover of public library management.

Maureen Killoran (December 2008) “Privatization of Public Libraries: A List of Information Resourcesexternal link opens in a new window.” Massachusetts Board of Library Commissioners. 

A comprehensive report published by the Public Library Advisory Unit of the Massachusetts Board of Library Commissioners.  The report is intended to aid those faced with difficult decision about public library privatization.

Melissa Maynard, (August 1, 2011) “Outsourcing the local library can lead to a loud backlashexternal link opens in a new window.” Stateline: State Policy & Politics, Updated Daily.

Every community has library users who believe that the library is a core function of local government. Some are turning to state lawmakers for legislation that would make library privatization more difficult.

Daniel Page. (2011). “The Threat of Privatizationexternal link opens in a new window.” Arkansas Libraries, 68(1), 8-9.

Page's article explores the issues and perceived dangers of privatization of public libraries.  Page contrasts the mission and ethos of public libraries compared to the for-profit goals of the private sector.  The author argues that savings and accountability are not ensured despite Library Systems & Services (LSSI) claims.

Matt Sylvain (January 2009) "Library Professional Speaks out on Possible Library Privatizationexternal link opens in a new window," Southcoast Today/Chronicle.

An opinion paper. The author raises several pertinent points.

Last Updated: July 13, 2018 -- asm