The UCSD Libraries Collections Budget: Cause for Alarm




THE PROBLEM




• Journal price increases of 12—14 percent per year for last six years


• Collections budget increases of 3.3 percent for last six years


• Exponential growth of published scholarly research


• As a result, journal cancellations will be required












PLANNING FOR JOURNAL CANCELLATIONS



• A cancellation project in 1997 will stabilize us for 3 years


• We will maintain the current mix of support for disciplines and formats


• We will cancel print when electronic content becomes available


• We will need to reduce 1997 journal expenditures by 20%



• All broad disciplines cut equally


• Cancellations to be carried out in consultation with faculty


















FUNDING UCSD ACQUISITIONS AND ACCESS IN THE COMING YEARS





• The UC systemwide Library Planning and Action Initiative has a goal of developing a sustainable business model for UC’s libraries



• Campus administrators are not able to secure adequate new money to maintain current acquisitions levels



































WHAT WILL THE LIBRARY DO?



• The Library will increase fund-raising


• The Library will increase resource sharing


• The Library will continue to migrate to electronic content





























































• Moving $$ from Library’s Operating budget will not solve the problem


• Realigning spending within the Collections budget will not solve the problem







NATIONAL ISSUES AFFECTING ACQUISITIONS AND ACCESS




• Are academia and publishers inextricably linked?




































• Copyright will continue to be a key factor in scholarly communication

Journal price increases, especially in the sciences and medicine, have mushroomed during the past decade while increases to the Library’s collections budget have not kept pace. During the last six years, price increases have averaged 12—14 percent per year while at the same time the average yearly increase to the collections budget has been 3.3 percent. The dramatic difference between the rate of increase for journal prices and the Library’s collections budget illustrates the severe magnitude of the problem.1 (See also Attachment #1.)

In addition to double-digit percentages for journal price increases, the Library faces other challenges associated with library acquisitions. There has been exponential growth in the amount of scholarly research published. Therefore, the issue is not one of supporting only the increased costs of what we already have, but also of being positioned to acquire more newly published works representative of the scholarly research produced. In addition, the Library must now purchase monographs close to their time of publication because, with publishers reducing sizes of print runs to lower costs, research monographs are often unavailable later.

Of all of these challenges, though, the journal price increase problem is the most severe, because it has wreaked havoc with the Library's collections budget. To address this problem, another round of journal cancellations will be required at UCSD, a daunting task given that the Library has already reduced its paid subscriptions by 1475 titles since FY90/91, a 17% reduction. (See Attachment #2.)

A number of variables affect how many titles will need to be cut during this cancellation project and when the next journal cancellation project will need to be conducted. The primary variables include the annual:

  • Rate of inflation for print materials
  • Rate of inflation for electronic materials
  • Rate of increase for the Library’s collections budget
  • Percent of the journals collection that is in electronic form
  • Cost of electronic content compared to print equivalents
  • Percent of the collections budget devoted to journals


Library acquisitions staff have developed a model for how best to proceed for the next three year period, using assumptions for these variables:

  • We will conduct a cancellation project in 1997, effective with the January 1998 subscription base.
  • We plan to manage for three successive years without another cancellation effort. This strategy enables us to retain more titles and reduce the impact of high administrative costs associated with managing yearly journal cancellation projects.
  • We will maintain current ratios for distributing available dollars among the various disciplines and formats (e.g., journals, monographs). (See Attachment #3.)
  • We will cancel print subscriptions the year after electronic content becomes available, wherever feasible.
  • Electronic journal pricing is variable among publishers; some charge more than the printed journal and some charge less. For modeling purposes, we have made an optimistic assumption that electronic content will cost 90 percent of print content.
  • Inflation rates for print content will be 10 percent.
  • Inflation rates for electronic content will be 10 percent.
  • The dollar mix of print to electronic within the journals budget will be as follows:

    • 97/98: All print subscriptions still maintained regardless of electronic content
    • 98/99: Print 60%; Electronic 40%
    • 99/00: Print 55%; Electronic 45%
    • 00/01: Print 50%; Electronic 50%
    • 01/02: Print 40%; Electronic 60%


Using these assumptions and collection budget data, we will need to reduce journal expenditures by 20 percent or $622,360. In 1997, sufficient numbers of journals will be identified to be cancelled effective with the January 1998 subscriptions. Although the Library considers journal cuts of this magnitude as unacceptable, in view of UCSD’s status as a premier research institution, such cuts are unavoidable in the current budgetary environment.

Savings that will accrue from these cancellations, plus any savings that the library can achieve as electronic content becomes more widely available, should enable us to avoid additional journal cancellations until 2000/01. During this three year time frame, a better understanding about electronic content and scholarly communication trends should emerge that will help us to make more informed decisions regarding acquisitions of, and access to, scholarly content following the year 2000. (See Attachment #4.)

As has been the case with past journal cuts, all broad disciplines will be cut equally. Therefore, every library’s collections budget will be cut 20 percent. Cancellation processes will be discussed with the various library advisory committees and will be carried out in consultation with faculty. In some libraries, data has been collected for in-house journals usage that can be used in conjunction with faculty input to guide the cancellation process.

As long as the rate of journal price increases exceeds the rate of increase of the Collections budget, we are working with an inadequate funding model to support acquisitions and will need to cancel journals. Future cancellations will be avoided only if new and sustainable budget resources are found to support acquisitions and access, or if changes in the way in which we disseminate scholarly communication occur.

How can one secure new and sustainable resources? Financial support to protect UC collections budgets from inflation was eliminated by the state in 1989. No sustainable funding model has been in place since that time. The Office of the President has created The Library Planning and Action Initiative, an 18-month effort that as one of its goals will “recommend a sustainable business model or models for the university library system to accommodate the changing funding, intellectual, service, collection development, and technology environments.”

Could UCSD campus administrators increase library funding to maintain our current level of journal acquisitions? To maintain current acquisitions levels, the following amounts of new money for journals would be needed:

If permanent increases were funded:
97/98: $465,000
98/99: $165,000
99/00: $330,000

(NOTE: FY97/98 figures are high because the Library has been using reserves to cover journal increases for 93-96. These reserves are now exhausted.)

If one-time increases were funded:
97/98: $465,000
98/99: $630,000
99/00: $952,000


It is extremely unlikely that funds of this magnitude would be able to be secured for library acquisitions.

Within the UCSD Libraries, three activities will continue to be pursued to support acquisitions and access. These include:

Allocating more money to the Collections budget through increased fund-raising.

Fund raising to support acquisitions has always been the highest priority for the Library’s development efforts.2 The campus, with the exception of the NEH endowment drive from 1986 to 1989, has not considered the library as a campus priority for fundraising and development efforts. The Library is increasing its support for fundraising activities by hiring a full-time senior development officer devoted solely to the Library.

Increase resource sharing with other institutions.

One important mechanism to compensate for increased demand for materials not held at UCSD is to develop better document delivery services. Interlibrary loan at UCSD has steadily increased; borrowing was 14,800 in 1990/91 and 28,131 in 1995/96. Resource sharing is a key component of the UC library system, consonant with the UC libraries’ principle of “one university-one library.” Shared collection development programs are continually emphasized; turnaround times for interlibrary loan requests are continually being reduced; and new methods for collaboration are continually being pursued. UCSD is now leading a regional effort to link all of the academic libraries in San Diego and provide direct patron-driven interlibrary loan with same day delivery service.

Relying on interlibrary loan causes its own overhead. In addition to the direct cost experienced by faculty and graduate students caused by the inherent delay in getting access to print-based information when interlibrary loan is mandated, there are also indirect costs. The Library incurs additional staffing costs for processing and must pay additional copyright fees when the library exceeds fair use guidelines. Eventually these costs must be paid by further cuts in the collections budget or other operations. While electronic content can be easily moved from one location to another in a very timely fashion, proposed copyright legislation may significantly change interlibrary loan, as we currently know it. Already, most electronic journal licenses do not permit the use of electronic journal articles for interlibrary loan.

Migrating to electronic content to save dollars.

We are hopeful that electronic content will, in the long run, slow the rate of inflationary growth, reduce overall expenditures, and improve access. In addition, digital technology appears to be the only solution that can deal with exponential growth. However, our budgetary problem is real and immediate; any solution potentially provided by the migration to electronic texts will not be realizable during the next several years. In addition, current negotiations with the commercial publishers of heavily-used science, technology, and medical titles regarding annual rates of inflation for electronic content still generate rates that vastly exceed the current rate of growth for the Library’s Collections budget.3

Other suggested actions will not solve our immediate acquisitions problem because their implementation will generate results that are unacceptable to our users and their implementation will not generate sufficient permanent dollars in order to institute a sustainable financial model to support acquisitions. These include:

Allocating more money to the Collections budget from the Library’s Operating budget.

The Library already has over $1 million in unfunded high priority needs within its Operating budget, above and beyond the budget shortfalls associated with the Collections budget crisis. It is in the midst of a programmatic realignment whereby portions of the salaries budget will be reallocated or reduced dramatically to cover other salary or non-salary high priority needs, including changes required to deliver information in electronic formats.4 (See also Attachment #1.)

Realigning spending priorities within the Collections budget.

Within the Collections budget there are historical ratios that exist between amounts of money spent for materials in different broad subject categories and in different formats. For example, we balance spending between social sciences, humanities, and the sciences. We also balance spending among monographs and journals. Any of these ratios can be altered to protect journal subscriptions; however, such alterations are not in the long run sustainable and will seriously impact selected user groups. (See also Attachment #3.)

Dramatic changes in the way in which we disseminate scholarly information are required. Scholarly communication has now become an extraordinarily complex business with much at stake for a variety of players: for-profit and not-for-profit publishers, scholarly societies, faculty, campus administrators, librarians, etc.

Under current structures, journals from commercial publishers are the primary mechanism for communicating knowledge in the scientific, technical, and medical arena. Faculty serve as editors or editorial board members for these journals. Faculty submit articles to the publishers of these journals, thereby promoting scholarly discourse as well as earning academic advancement or accolades as part of formal academic review processes. Publishers sell these very journals at costly institutional rates back to libraries at the faculty member’s institution where these faculty teach and do research. Ironically, however, the cost-per-use of some of the most expensive journal titles in medicine are probably lower than many of the cost-per-use figures for the much less expensive humanities journals.

Some scholarly societies act like commercial publishers and others more closely resemble not-for-profit entities. Institutional rates for key journals from scholarly societies serve as important sources of funds for operating some societies, thereby keeping individual membership rates at low levels.

Academic reward structures emphasize print-based distribution of knowledge and contribute to the surge of published research.

All of these factors and many more affect the current crisis faced by all research libraries attempting to acquire and preserve scholarly communication. We must move from viewing this as a library crisis and instead view it as an academic crisis. Faculty on our campuses are key players who can mandate this scholarly information shift and must join librarians and campus administrators in addressing this problem.


Interwoven into the academia and publisher linkage is the issue of copyright. Copyright is a critically important concern and will become even more important as the electronic age advances. Copyright affects the university community in two key ways. Currently, as faculty submit articles for publication, copyright for the great majority of these articles gets passed to the publisher. Some faculty have begun writing in clauses that retain copyright for the electronic version of the article. While most publishers have accepted this clause to date, it is not clear whether publishers will accept articles in the future if such clauses are linked to specific articles by more and more faculty. Secondly, copyright legislation is currently in flux. If current legislative efforts led by the entertainment industry succeed, copyright fees would be paid every time information is transmitted from one system to another. Fair use would most likely disappear and interlibrary loan as we currently know it would no longer exist. The University of California is monitoring these federal copyright initiatives and has written and is now circulating its “University of California Copyright Legislation and Scholarly Communication Basic Principles,” in order to educate lawmakers and assure that academic discourse remains unfettered.

These two national issues, scholarly communication in general and copyright in particular, will in the long run hold the key to the current acquisitions crisis that we face. Changes will not occur in a sufficiently timely fashion, however, to resolve our current budgetary challenges. In the meantime, we will need to continue with journal cancellations.


Gerald R. Lowell
University Librarian
February 20, 1997




Attachments


The UCSD Libraries’ Collections Budget1

The Library’s permanent Collections budget in 1990-91 was $4,100,056; in 1996-97, it was $4,964,281. No cuts to this budget were levied during this period. Temporary monies allocated to the Library’s Collections budget vary from approximately $150K per year through 1993-94 to about $200K in 1996-97; in 1994-95 temporary monies totaled $380K. The permanent and temporary Collections budget has increased an average 3.3% yearly during the past six years; for the last two years the permanent increase has been less than half of one percent. (See also Attachment #1.)


The Geisel Endowment2

The Library was incredibly fortunate to receive the Geisel Endowment. Over the long run, the Library will benefit greatly from endowment earnings. However, the Geisel endowment is a planned gift that comes to the UCSD Foundation over a multi-year period. Geisel interest income will start being received by the Library in 1997/98 and is estimated to be $178K for 1997/98. The Library’s spending plan for the first five years of receipt of Geisel income is to devote 60% for acquisitions and access, 20% for information literacy and outreach, and 20% for University Librarian initiatives, per the parameters discussed in the endowment proposal.


Electronic Journals3

The least expensive pricing structure to date from commercial publishers of the most important scientific, medical, and technical titles calls for their electronic journals to cost 90% of their paper equivalent. Currently, most of the scientific, technical, and medical commercial publishers are linking availability of electronic content to 3-year guarantees of fixed dollar revenues that equal an institution’s current budget paid to the specific publisher for paper subscriptions. These 3-year agreements provide for access to all of the electronic journals issued by a specific publisher, with guaranteed inflationary rate increases that are lower than those currently experienced on the open market.

As more and more content becomes electronic, the Library’s information management cost models will change. Processing and inventory control costs associated with paper will be replaced by equipment, networking, and user interface design costs. In order to be able to use electronic content effectively, faculty and students need appropriate hardware and software at their office or homes so that they can access electronic information. The Libraries need workstations in their public service areas capable of supporting web-based information retrieval. Therefore, UCSD is still not prepared, campus-wide, to make full use of electronic information. The Libraries’ public service “dumb” terminals need to be replaced. The second and final phase of the faculty workstation project has not yet been completed on the general campus due to budget constraints. Many medical school faculty do not have workstations capable of accessing electronic content via the Web.

Continued use of electronic content requires UCSD to provide better support to networking. Currently, users experience great ongoing difficulties in getting connectivity questions resolved. Staffing levels within Academic Computing Services are inadequate to meet increased demands.


The UCSD Libraries’ Operations Budget 4

The Library’s permanent Operations budget has increased 0.2% average per year during the last six years. In 1990-91, the permanent budget was $11,396,218; in 1996-97 it was $11,554,836 (campus levied a cut of 3.73% in 1992-93 and a cut of 2.48% in 1994-95). The bulk of the increase reflects salary actions linked to merit increases and reclasses. The Library has also received temporary monies to support Operations. The permanent and temporary Operations budget has increased 0.35% during the past six years. (See also Attachment #1.)


Collections Budget Subject Subdivisions and Mix of Journals and Monographs5

The Library’s Collections budget is first allocated by library, thereby providing an initial broad subject breakdown. As shown in Attachment #3, 43% of the Collections budget supports social sciences and humanities; 52% supports the sciences (5% supports librarywide purchases). Within each of these broad subject categories by library, the budget allocation is further subdivided by more specific subject categories. Within each of these subject breakdowns, the budget allocation is further subdivided by type of material, i.e., monographs and journals. The mix of monographs to journals varies dramatically by discipline; within the social sciences and humanities, 30% of the budget supports journals; within the sciences, 91% of the budget supports journals. Overall, 62% of the Library’s Collections budget is allocated to journals.


Attachments

#1: Library Budget Overview
#2: Journals Compared - FY 90/91 to FY 95/96
#3: FY 1996/97 Collections Development Snapshot
#4: Projected Cost of UCSD Libraries Journals