Ohio House leaders released a range of changes in their substitute budget bill last week. Gov. DeWine’s cannabis, gambling, and tobacco tax increases were out, and his proposed child tax credit was removed. The bill also included tax cuts for coal mining, a new tax expenditure to support anti-abortion advocacy centers, and many other changes to tax, budget, and other policy areas.
Maybe the most historic change introduced in the new bill, however, was a proposal to eliminate the state’s public library fund, which has funded Ohio’s library system for the past 100 years.
To be clear, this is not a total elimination of public library support, just the fund. The new bill folds the special line item into the state’s general revenue fund. The proposed House budget still provides public library funding from the general revenue fund, though it does cut the governor’s proposal to fund libraries by 9% — a $100 million reduction.
Ohio ranks near the middle of the pack on a lot of metrics. Its library system is not one of those. Ohioans visit their libraries 3.41 times a year on average — second highest among all states across the country. The average Ohioan checks out over 12 books a year — more than any other state in the country. Two-thirds of Ohioans have a library card, which puts it second among states in that category.
In the early days of my firm Scioto Analysis, I pondered a lot about market failure. Okay, I still do, but at the time I had a lot fewer clients to keep me occupied. I recall being on the phone with my benefit-cost analysis professor from graduate school asking him what services libraries provide to correct market failures.
At the time, I was very focused on circulation: how does provision of books help correct market failures?
What I missed at the time was right in front of me. I built Scioto Analysis at the library. I would bike there daily to have a place to work away from home. I would reserve conference rooms so I had places where I could have in-person or online meetings. I used their computers to do work and had a place to print RFP responses — a nice resource for someone who hasn’t owned a printer in years.
Entrepreneurs aren’t the only people who benefit from libraries. A study out this year in the American Economic Journal found investments in public libraries lead to increased test scores for children who lived nearby. This means libraries are also helping build tomorrow’s workforce.
Economist Howard Fleeter estimates Ohio’s libraries provided physical and electronic circulation, computer and technology services, reference services, programs, and other services to the tune of a total value of $3.1 billion in 2019. Comparing this to the total operating cost of the system of $780 million, Fleeter estimates the system generates about $4 in economic benefits for every $1 in operating expenses.
There are certainly other benefits to public libraries. Services to low-income people and people struggling with housing security, as a place for children to spend time after school, and civic benefits from people having a place to be around others free of charge are all values of the library. The economic benefits are real, however, and they could be threatened by proposed cuts at the state level.
This commentary first appeared in the Ohio Capital Journal.