Your Library and Its Finances
This lesson presents a lot of information about finances and budgeting for public libraries. You will be able to navigate through information, resources, and activities using the buttons in each page or the lesson menu.
There are four main topics
- Local Government Accounting
- Library Board Authority and the Role of Local Government Officials
- Sources of Revenue
- Common Expenditures and Expenses
There will be some short quizzes throughout this lesson to help point out key details.
Salaries and Wages
Salaries and wages – for most libraries this is where the largest percentage of your funding is spent. This includes the salaries/wages for the library director and staff as well as the cost of their benefits. If you can offer health insurance or retirement, those expenses will fall in this category. Other items found in this category include payroll taxes such as social security. This is also where you will find the line item for worker’s compensation.
Please note – the Montana Code (MCA 22-1-310) gives boards the authority to set salaries and wages. However, that is usually done in conjunction with the local government officials. In order to receive health insurance and/or retirement, library employees are usually employees of the city or county. To be fair local government officials might adopt a pay matrix. The board should consider following that pay matrix. If necessary, the board should consider using classification systems or negotiating with the city or county to pay library employees fairly.