Privatizing Libraries Idea Put On Hold

Talks of privatizing the county's library system are on hold, even as the county mulls a sales proposal from a Maryland-based outsourcing firm.

Health and Human Services Director Jean Rags, one of three county officials who met with a representative from Library Systems and Services, LLC (LSSI), said the sales material is "a little misleading."

The company claims it can save Hernando County $500,000 annually if it takes over the county's six library branches.

Problem is, the company is a bit vague about how it would accomplish that, Rags said.

For example, if the county transfers its employees to the private sector, it would have to cash out their accrued sick leave, vacation time and other benefits, totaling up to $250,000, she said.

Rags said for-profit firms such as LSSI typically offer attractive packages for the first year of operations. But beyond that, there are likely to be increased costs.

And there is no mention of ongoing costs of maintaining those library buildings, she said.

"Before we throw the baby out with the bathwater, let's make sure we know what the bathwater costs," Rags said.

Rags said the county administrator's office notified LSSI that it needs more clarification on its sales pitch.

Rags said she is still awaiting a response.

The county had hoped to discuss library privatization at Tuesday's budget and finance committee meeting.

That won't happen now.

LSSI is one of the largest such outsourcing companies in the nation and currently manages 14 public library systems and 64 branch operations in the nation.

But Rags said the firm has no presence in Florida and, except for a couple areas where it has taken over services, has no experience in dealing with a library system as large as Hernando County's.

In a memo, Library Services Director Barbara Shiflett detailed several concerns she has with privatizing, including the public's perception of local taxpayers' dollars going to a private company's profits, additional fees imposed on patrons and less accountability to the public and government.

Shiflett said the transfer of county employees and loss of their benefits and salary may pose a problem now that government workers have unionized.

LSSI, or whatever company would take over services, would manage the library operation on behalf of the county. The library organization and the buildings and assets would remain the property of Hernando County.

In its sales brochures, LSSI indicated it typically hires 80 to 90 percent of existing library employees and that its benefits package is comparable to the county's.

With the county facing a projected $10 million shortfall next year, library privatization has been considered as one way to decrease costs.

The county budgeted $2.56 million for library services for fiscal year 2009.