Existing Fees

NDSU Libraries already imposes fees for some services. Mediated searches of pay­per­use databases are one example, where clients are charged the cost of the access fee, plus an additional $15 service fee. Photocopying is another example. A third example is a usage fee for "Town Patrons". Town Patrons are citizens who are not officially affiliated with NDSU who purchase access to the NDSU Libraries for $10/year. There are perhaps 100 of these in all. In addition, the Libraries imposes fines for overdue or lost library items.

Possible New Fees

1) ILL Delivery Fee ($2/request)

Pro: NDSU Libraries can recover $18­$20,000/year by imposing a $2 fee for ILL requests. While this fee falls far short of covering the actual cost of ILL delivery (approximately $17/item), it will reduce the volume of requests. Indeed, the figure of $20,000 above assumes that the fee itself will result in an approximately 40% reduction in the current number of requests (14,000 this year). UND has already imposed a $2/request fee for ILL requests and has experienced this reduction in request volume. The additional revenue could be used to resubscribe to some of the canceled titles.

Con: This year the Libraries in encouraging patrons to utilize document delivery services (both electronic and traditional ILL) as a substitute for journal ownership. The Libraries has set aside $45,000 to subsidize costs associated with document delivery via electronic services. It would be logically inconsistent to impose a fee for ILL requests when electronic document delivery is not subject to such a fee. The imposition of a request fee is counterproductive in that it presents a barrier to the Libraries' broader mission of supporting and facilitating faculty and student research. Fee collection and management costs will additionally offset what are, in reality, meager revenue gains.

Recommendation: The Library Committee recommends against the implementation of an ILL request fee at this time. A reconsideration of such a fee should, however, occur following an assessment of the success of the first year of the document delivery experiment. If such a fee is ultimately implemented, it should be applied to both electronic document delivery as well as traditional ILL requests.

The Libraries have provided three possible use scenarios for three deferent incremental funding amounts. These appear below.

The North Dakota Board of Higher Education's proposed budget calls for a 6% increase in all NDUS libraries operating budgets. For NDSU Libraries, a 6 percent increase its current operating budget of $1,330,408 would amount to $79,825. The chief use of this additional money would be to meet FY97­98 serials inflation expenses (estimated at a 10% inflation rate).

Funding increases beyond the Board's proposed budget would allow several possibilities. The following scenarios are based on the FY96­97 needs budget NDSU Libraries submitted to Vice President Schnell. This does not include equipment needs of at least $250,000 (some of which Technology Fee revenues have now met).

If increased by $250,000:

FY97-98 Serials inflation	$ 77,000
Restore book budget to $250,000	$100,000
Reinstate Some Canceled Serials Subscriptions	$ 73,000

If increased by $500,000:

FY97-98 Serials Inflation	$ 77,000
Restore book budget to $250,000	$100,000
Reinstate Some Canceled Serials Subscriptions	$323,000

If increased by $750,000:

FY97-98 Serials Inflation	$ 77,000
Restore book budget to $250,000	$100,000
Reinstate Some Canceled Serials Subscriptions	$350,000
Acquire new subscriptions	$178,000
Student Assistants & Part-Time Support Staff	$ 45,000

Potential Funding Sources. The NDUS administration's call for additional appropriated funding is a necessary component of long­term library support. However, other on­campus funding sources may be necessary to enable the library to provide the level of support needed at a research and teaching institution such as NDSU. Detailed proposals for sources of new funds will be brought to the Senate at a later date but it is appropriate to mention some possibilities that we are considering. NDSU's indirect cost rate is currently 41 % MTDC for research grants. This is very modest compared to other institutions. It may be appropriate for the indirect cost rate to be increased and to dedicate at least a portion of the increase toward the defrayal of the increased costs of maintaining research infrastructure, such as the Library.

There are a number of fees that may be used to help support the library. This year the library has received $68,000 in technology fee money. Other possible sources are student activity fees or the institution of user fees for various services.

The overall health of the library will probably require some mix of increased appropriated funds, increased resumed indirect grant overhead funds, student activity fees, user fees, and technology fees.

11-05-96

From University Senate Minutes, November 18, 1996