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RAD to investigate Carnegie's claims of library budget deficit
Thursday, October 22, 2009

The Allegheny Regional Asset District board voted unanimously yesterday to investigate the Carnegie Library of Pittsburgh's claim that it faces a growing budget deficit, predicted to hit $6 million by 2014.

Projecting a $1.2 million shortfall next year alone, the library said Oct. 7 it will close four branches, merge two and cut staff and services by Feb. 1. Scheduled to close are the Lawrenceville, Hazelwood, Beechview and West End branches, and the Carrick and Knoxville branches will merge.

That announcement, coming days after RAD allocated $17.6 million to the library's 2010 budget, the same amount it received this year, prompted calls for a fresh look at the way the library determines its future finances.

The RAD board agreed. Member Daniel Griffin moved to initiate the review process by calling for proposals from auditing firms. The board will select an auditor, then vote to fund its study.

RAD Executive Director David Donahoe estimated the review could cost $10,000 and take at least eight weeks.

"This is the first time we've used our authority in such a broad way," he said. He added that the review is not a "performance audit" of the library's present financial condition, but a study of the factors it used to predict future deficits.

"The library has promised its full cooperation," Mr. Donahoe said, adding that it has complied with all auditing requirements in the past.

Library President and Director Barbara Mistick said she would resubmit a revised 2010 budget to RAD after computing figures from the recently enacted state budget, which cuts library spending overall about 20 percent next year. The budget agreement came after the library announced its retrenchment plans.

Ms. Mistick called the RAD vote "the right decision" after the session in the Regional Enterprise Tower, Downtown. "A review of the library's situation is good for all of us."

RAD board member Rick Pierchalski agreed.

"We made a good decision," he said. "It can shine the light on problems and we felt we had to respond to public outcry over the closings."

The board heard a cross-section of that outcry before the vote as speakers representing Beechview, Lawrenceville and Carrick spoke against the closings.

Beechview activist Anna Looney had a coffee can holding $122.20 she said children collected by selling hot chocolate at the branch Saturday.

State Rep. Chelsa Wagner, D-Beechview, scolded the library trustees and Ms. Mistick for "a lack of transparency" in failing to both involve and inform the public about which branches were targeted and why.

Ms. Wagner and more than a dozen state and local officials met with Ms. Mistick and some of her staff Tuesday to air disagreements with the decision and to propose additional state funding if the Legislature approves table games at casinos.

Ms. Wagner said the library could stand to gain a portion of revenues from a state tax on those games if it agrees to keep the branches open.

"Everybody needs time to pursue those solutions," Ms. Wagner said. She urged the library to "table" plans to close the branches until additional revenue can be found and urged the RAD board to cut its library allocation accordingly if the branches do close.

Ms. Mistick told RAD she would meet with Pittsburgh Mayor Luke Ravenstahl and state Sen. Jay Costa, D-Forest Hills, tomorrow to review the library's plans and funding proposals.

Bob Hoover can be reached at bhoover@post-gazette.com or 412-263-1634.
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First published on October 22, 2009 at 12:00 am