A slightly edited version of the following column was published as an "In My Opinion" column in the August 25, 1997 Portland Oregonian newspaper.

Let library users pay

The current tax system supporting libraries is regressive; it transfers wealth from the poor to the well-to-do

Cannon Beach has a library that is privately funded and run by volunteers. The entire Riverside County (CA) library system is privately managed. Multnomah County could take a page from these and other examples to hold down costs and improve service.

Cannon Beach's library offers much to learn from. For example, it recently implemented a one-time $5 membership fee. Those who directly benefit from the library support it directly. To ensure that libraries are open to all, individuals who can't afford a small fee could perform a few hours of work in exchange for borrowing privileges.

Another option is to contract out library operations. This summer, California's Riverside County public library system became the first in the nation to be entirely operated by a private company. Library Systems and Services Inc., based in Germantown, Maryland, has pledged to boost hours by 25 percent, increase the annual book budget from $144,000 to $180,000, and retain all library personnel at current salary levels--all for one of the lowest per capita spending levels in the nation.

According to an August 11 article in the Los Angels Times, Library Systems has already hired more clerical staff. This increased the ability to get books back on the shelves faster. Company co-founder Frank Pezzanite says, "with government the first to go when the funds are cut are the little people. Then professionals at a higher salary are spending their time doing nonprofessional tasks." Library Systems has provided management services at the Library of Congress, the Boston Public Library, and the Smithsonian Institution.

Unfortunately, few know much about the private history of public libraries, which includes Multnomah County's Central Library. Until just after the turn of the century, Central Library was a private institution.

Elizabeth Larson, in the March 1994 Reason magazine, notes that 19th century libraries, "both here and abroad, were usually run by church leaders or philanthropists and were often subscription libraries. The annual dues were low and were waived for those who could not afford them. In towns without full-fledged libraries, booksellers and other merchants often filled the void....British booksellers...offered books for loan, and shopkeepers operated small circulating libraries alongside of liquor, shoebuckles, and hats."

Edward Banfield, an urban historian at Harvard University, reports that several thousand rental libraries were still operating in the United States as late as the 1960s. However, tax-supported government libraries have driven most of the commercial book lenders and many private libraries out of business: it's hard to sell something when the government is giving it away for "free".

Nevertheless, private subscription libraries still operate in this country. Larson notes at least seventeen subscription libraries are open in Boston, Newport, and elsewhere. New York City is home to two thriving subscription libraries: The New York Society Library, founded in 1754, and the Library of the General Society of Mechanics and Tradesman, founded in 1820.

Renewing the practice of user, or subscription, fees would help depoliticize library budgets and operations. Further, user fees would be more fair. We should not tax everyone for services that only some use.

The current tax system supporting libraries is regressive; it transfers wealth from the poor, who are less likely to use libraries, to the well-to-do, who use them more. Beyond economic justice, policy analyst Robert W. Poole, Jr. advocates user fees over general taxation for several reasons.

Flexibility. Services can be much more flexible and responsive when they are priced. Program and service changes can be made faster when the users, rather than all taxpayers, foot the bill. To take advantage of this benefit, managers should be allowed to initiate new programs and terminate the old in response to user demand.

Freedom. Substituting user charges for taxes would allow Oregonians to make more of their own decisions and control their own lives and resources.

Solution to the "free rider" problem. Often non-residents take advantage of local government services without paying for them. User fees solve this problem: they charge everyone who takes advantage of a service, regardless of where they live.

Ensuring that growth pays for itself. User fees are much better than politically popular development fees. No one knows how much a new resident is going to use a library. And no one can guarantee that development charges will actually go to the library. User fees are best; they provide a direct link between the consumer and service provider.

Many people keep repeating--and believing--the false dilemma, "either pay higher taxes or services must be cut". To the contrary, workable alternatives do exist, and we would all be better served if they were researched further and publicized.