Although we typically think of it as a process completed near the end of the year, budgeting at TRL is a continuous effort. Information is collected each summer and submitted to TRL’s Finance staff who review anticipated needs with Library Administration. Together, we prepare a budget estimate for the year ahead that is presented for approval to the Board of Trustees. While each year's annual budget is approved by the Board at the end of the calendar year, a budget adjustment is needed in February of the following year to identify the beginning fund balance and carry forward funds for any capital projects that were budgeted, but not completed, in the prior year.
TRL's Fund Balance Management Policy requires that we begin each year with 30% of estimated revenues available. After all financial documentation had been completed for December 2025, a review of the beginning fund balance for 2026 revealed that TRL is facing an immediate budget shortfall through the end of this year, and an additional projected shortfall at the end of the year, due to year-over-year rising costs, a decreasing levy rate, and limited annual revenue.
This is not an unanticipated situation. In fact, 2022 was the last year that revenues comfortably covered all expenditures. In subsequent years we have made organizational changes and utilized new technologies to offset negative impacts to services and programs and continue to provide quality library service to our communities with increasingly limited resources. However, we have now reached a point where expenditures are outpacing revenues beyond what we can manage through incremental adjustments, and we must make hard decisions.
In the months ahead, our communities will begin to see the impacts of actions we must take to reduce expenditures, including an estimated $1.8 million reduction to the collections budget resulting in fewer new materials purchased, a drawing down of paid performers and presenters resulting in fewer library programs and a reduction to the amount of free printing offered to $20 per month effective March 1. Less-visible operational changes will include significant cutbacks to supplies and non-essential purchases, as well as limiting employee travel for conferences and training. Finally, we have implemented a hiring freeze, effective immediately, and have begun planning for staffing reductions to be effective as of May 1.
While this is difficult news to share, we know that our situation is not unique. City, county and state government as well as schools and special purpose taxing districts like ours have all faced the reality of doing more with less for many years. Library services will look different in the months and years ahead. However, guided by the Library’s Strategic Direction and informed by our Mission, Vision and Values, we will work to meet the needs of our communities as fully as possible while remaining responsible stewards of public resources.
TRL leadership has already begun working with our Board of Trustees to ensure a sustainable path forward. In the spirit of transparency, we will share additional information as soon as possible. In the meantime, the public is invited to review information, background, and FAQs related to the library funding and budget at: TRL.org/budget/
Thank you for your continued support of Timberland Regional Library.
Cheryl Heywood
Executive Director