Meeting Summary for Sage User Council - Emergency Meeting

Apr 07, 2025

Recording Link: https://vimeo.com/1074033585

Quick recap

The meeting discussed current federal efforts to eliminate the IMLS agency which helps fund the Sage inter-library loan courier system and the need for Sage libraries to explore alternative service strategies and funding sources given the uncertainty. The group discussed various options to temporarily extend courier including decreased holds, reducing the number of Orbis Cascade courier runs from 5 to 2 per week, the use of allocated funds to cover courier costs for half a year, and various fee increase options to achieve self-sustainability. Lastly, discussion focused on preparing a public fundraising campaign to sustain the Sage library service for the upcoming year, and the possibility of private foundations contributing to a goal of around $80,000.

Next steps

• Perry to send out a meeting summary and email User Council members a poll for a vote on the courier survival strategy.
• Perry and Beth to work with Stephanie Chase (Libraries of Eastern Oregon) to strategize a fundraising campaign.
• Sage to wait for notification of a termination of grants notice from IMLS to the State Library before initiating next steps.
• Library members to make a case for more funding from their local governing bodies to work towards self-sufficiency.
• Sage libraries to explore options with their local foundations and friends groups for potential fundraising support.
• Beth to get more definitive answers on local courier options for the upcoming fiscal year to determine a more accurate fundraising target.
• Isaac, representing the Orbis Cascade Alliance, to start conversation with their board about potential financial contribution amounts.

Summary

IMLS Shutdown and Library Funding

The meeting involved a discussion about the current state of the IMLS (Institute of Museum and Library Services) and its effective paralysis due to an executive order by President Trump issued on March 14. The IMLS has since been decimated, with a new Acting Director installed, 85% of its staff fired, and several states receiving grant termination notices. Responses to letters of inquiry from the IMLS Advisory Board and State Librarians have been stonewalled, and last week a lawsuit was filed by 21 states challenging the shutdown order. The meeting also touched on the need for libraries and advocates to continue to engage with their local supporters, representatives and state legislators to secure funding. The meeting was recorded for future reference.

Orbis Cascade Courier System Funding

Perry discussed the financial impact to a variety of vital services managed by the State Library of Oregon. While the Sage courier system is largely funded by IMLS grants, the availability of statewide databases is entirely dependent on the funding, as are many state library consultant staff and other services. Beth then took the discussion lead, explaining that the contract with the Orbis Cascade Alliance for the Expak Courier is paid through the end of June 2025, and that Sage has funds to pay its smaller courier providers, which are on month-to-month contracts, through the end of June. She also shared a diagram showing the 9 main Orbis Cascade courier hubs, plus the EOU sorting hub, and the local couriers that come off of those hubs, as well as an expense sheet showing the cost detail projected for the current fiscal year.

Service Change Options Addressing Anticipated Funding Shortfall

Beth discussed the $120,000 courier budget projected for the upcoming fiscal year 2025-26, which was planned to be funded by $80,000 ($67%) from the IMLS and a $40,000 (33%) Sage contribution. Absent the IMLS grant, she presented three options to address the potential shortfall.

• Option 1: Hub service only. Assess a $2,000 fee from each of 9 main courier drop sites (Hood River, The Dalles, Arlington, IMESD, Baker County, Grant county,Harney County, Lake County, Klamath CC). This $18,000 added to the $40,000 Sage currently has budgeted would cover the projected $58,000 cost of Expak/Orbis courier to hubs. This would leave destination libraries to coordinate their own couriers, whether paid or volunteer, from the hubs.
• Option 2: Two day per week courier. Reduce the 5-day-a-week hubs to 2 days a week and decreasing patron hold allotments.
• Option 3: Half-year extension. Apply the $40,000 currently budgeted for courier towards a half-year contract with Orbis Cascade, if possible, and independent couriers. The full-year Orbis-Cascade cost is estimated at about $58,000. Lori from Orbis Cascade Alliance provided a 3% increase estimate for the year, which could help in planning. Mark from Hermiston Library raised concerns that the strategy on Option 2 to reduce the number of patron holds may not significantly impact courier volume. Beth acknowledged the uncertainty and suggested starting with the proposed reduction from 15 to 5, and adjusting if necessary.

Partner Supports Discussed

Isaac Gilman from the Orbis Cascade suggested the Alliance could share some costs to maintain hubs, pending approval from their Board of Directors. Wendy Cornelisen, the State Librarian, expressed appreciation for the Sage Courier's reach and impact, and assured that additional support options would likely arise as more people become aware of the issue. Several members spoke of potential contributions from their library foundations. Perry added that one Oregon-based philanthropic organization has expressed interest through Libraries of Eastern Oregon (LEO) to contribute to the effort of supporting the courier.

State Librarian's Support and Congressional Advocacy Efforts

Wendy expressed gratitude for the exemplary library work by all Sage members, and praised advocacy efforts by libraries and their supporters, mentioning Perry's participation in a recent state delegation visit to Washington, DC to help educate members of Congress. She emphasized that the entire IMLS budget (of around $300 million) is “small change found in couch cushions” in the context of the federal budget and encouraged Sage members to continue to share the importance of our work with key stakeholders. Perry added that Isaac Gilman of Orbis Cascade was also part of the delegation and while they received a polite hearing from Representative Bentz's staff, Bentz remains fully committed to downsizing federal spending by any means possible.

Membership Fee Cost-Sharing Proposals

Perry discussed the current Membership Fee Restructuring Plan underway to make fees more equitable, using a baseline membership fee and aiming for a per capita rate of $1 for public libraries. That plan is in its second year for FY25-26. Using the Year 2 fee structure as a foundation, there are several strategies Sage members could take to raise the $80,000 needed to offset the loss of IMLS funds. Perry displayed a spreadsheet with the various options. Foreseeable pros and cons of each option were listed in the Agenda.

• Option 4 (following Beth's proposals) would implement a 29% increase on top of the planned 2025-26 fees.
• Option 5 is a uniform fee increase of $1,510 per member. This has significant risk of being unaffordable by the smallest libraries, doubling fees for 17 and tripling for 5.
• Option 6 is a surcharge on items based on borrower rates, which would result in varying increases for different libraries based on volume.
• Lastly, Option 7 is a general 11% rate of increase added to rates planned for the year beyond completion of the 4-year fee restructuring plan. Perry highlighted that this option would result in only one member experiencing a greater than 50% increase and achieve self-sufficiency. The greatest burden, however, involving increases of $8,000 - $10,000, would be borne by the largest anchor members of Sage and which we cannot afford to lose as participants.

Preferred Option

Perry confirmed that the group's expressed preference was for pursuit of fundraising over service reductions or cost share assessments. This entails approval of Option 3 proposed by Beth to operate for up to 6 months and planning a fundraising campaign to sustain the Sage courier. Perry mentioned that a crowdfunding campaign with GoFundMe could be effective, while Valerie of Southern Wasco and Rachael of Hood River added that their library foundations are willing to help. Lori from Orbis Cascade Alliance emphasized the importance of preserving their community service and encouraged fundraising efforts. Perry suggested partnering with Libraries of Eastern Oregon (LEO) for planning a fundraising effort.

Fundraising Strategy Details

Dea expressed concern about returning money to funders if the IMLS situation turns around. Perry responded that under the current administration the prospect of course reversal is highly unlikely and suggested that individual donors might not need to be refunded, but the specifics for foundation gifts would depend on the situation. The group also discussed the possibility of the Orbis Cascade Alliance and Roundhouse Foundation contributing to the fundraising effort. Isaac asked about the target amount for fundraising, which was estimated to be around $80,000. The group also discussed the need for a vote on the courier funding option to employ should it be necessary.

Mark from Hermiston Library expressed concerns about the long-term sustainability of fundraising as a solution. Perry agreed that stable, predictable funding is required and encouraged all members to use this opportunity to seek greater funding from their governing bodies to achieve pricing listed in Option 7, if possible.

The conversation ended with Perry confirming the group consensus was to wait for notification of a termination of grants notice from IMLS to the State Library before initiating next steps.

Perry agreed to send out a meeting summary and an email poll to User Council Members for an official vote on the proposed options.

Meeting adjourned at 10:45 am Pacific Time.

Next Meeting will be May 20th