by Linda Chopra, LIRT Treasurer
For the last several years LIRT has been monitored for fiscal responsibility by the ALA Budget Analysis and Review Committee (BARC) because in the past our expenditures have consistently exceeded our revenues. Ideally, BARC would like LIRT to carry over approximately one year's budget into our fund balance each year. This "cushion" would enable us to draw from our balance when we need money for special events. Nevertheless, BARC is impressed that LIRT has established a 5-Year Financial Planning Subcommittee to address this issue and to plan ahead for special expenditures in the future. According to Lorelle Swader, LIRT's ALA liaison, we are the only round table in ALA to have such a subcommittee.
The LIRT budget has been a puzzle to our executive board for a number of years. In the past, ALA sent only sporadic budget reports to the treasurer and these were almost impossible to decipher. ALA uses their own unique terminology to describe line items in the budget. Without a cooperative, responsive liaison to translate these terms, we were literally in the dark about our finances. But, since Lorelle was assigned as our liaison last year, she has answered our questions and provided us with the information we need to understand ALA's complicated budgeting process.
LIRT income is derived from membership dues, sales of publications, and any other money-making projects that we undertake. The recent dues increase is helping revenues significantly, as LIRT has gained members, not lost them, since the increase went into effect last year. In fact, membership is up 3.9% from last year at this time. Although this is good news, LIRT is also experiencing increased expenditures which could erode our increased revenues. LIRT is planning both a retreat and a 25th anniversary celebration within the next four or five years. Lorelle has set up accounts for these special events in the 1998-99 budget, but both will need to continue having money allotted to them in subsequent budgets. So, LIRT must be especially frugal in the next few years in order to save money for these special events and to increase our fund balance so that BARC no longer feels it necessary to monitor us.