By PAULENE POPARAD

Plans to give 2009 staff raises at Westchester Public Library are being complicated by an anticipated 21.8 percent increase in the cost of its Principal Financial Group health insurance plan.

Meeting Wednesday, the Library Board authorized director Phil Baugher to solicit additional insurance proposals and to factor into next year’s budget a two-tier pay increase distinguishing between full-time employees who receive health-insurance benefits and employees who don’t.

Baugher said he budgeted $130,000 for health insurance next year but the projected increase now will be about $45,000 more, the latter amount comparable to a 4 percent pay increase for all employees.

After extended discussion the board tentatively favored Baugher’s recommendation for a 2 percent pay hike for insured employees and a 5 percent increase for those who aren’t covered. In July the Library Board will have to decide so a proposed 2009 budget can be advertised for public hearing.

Baugher said in some previous years employees participating in the library insurance plan didn’t get raises.

"I hate to see people’s income being held hostage by insurance,” said member Vern Odom. Observed member Karen Nash, “In these times you have to recognize the benefits of health insurance. It may be a very important reason why people keep their job.”

Without any raises personnel services represents $1.31 million of Baugher’s draft $2.05 million operating budget for next year. He said prior to the insurance hike he left a $79,005 budget margin but that was reduced by $8,000 when the board voted 7-0 approving a pay increase effective June 30 to $32,000 annually for Hageman Library branch manager Kim Scherer, who recently received a master’s degree in library science.

Baugher said he could absorb the $45,000 insurance increase and cut the margin lower in 2009 but with ongoing changes in how Indiana government is funded, doing so could create a problem for 2010 and beyond.

The director also noted it’s a challenge to prepare a 2009 budget when Indiana tax officials have yet to approve WPL’s 2008 budget, not expected until later this year. “It is impossible to apply an uncertain multiplier to an uncertain budget with any degree of certainty.”

In a related move the board voted 7-0 transferring $270,000 from the operating fund to the Rainy Day Fund now that the supposed balance of the 2007 tax collections has been received. Prior to the transfer the RDF had a $318,325 balance. In all WPL curently has $4,138,192 million in cash and investments.

Baugher said previously in Indiana what a government unit could raise in property taxes was controlled but now, what it can spend will be; clearing cash out of the operating fund will help future collections.

Also Wednesday, Baugher again outlined the impact to WPL of new state rules effective July 1 regarding certification of approximately 10 library employees. “I don’t see it will be a great burden for us to meet these requirements but I don’t like losing our discretion whether we want to invest in one person over another.”

Even if an employee is planning to retire soon, he explained, they still have to attend continuing education seminars to retain certification or WPL faces the loss of funding. The program has a problem in that there is no definition for department heads; rather than risk confusion later, Baugher is asking to grandfather the current managers at a higher classification status.

WPL attorney Terry Hiestand asked what problem the Indiana State Library is trying to solve through certification. “So (Indiana) has the No. 2 library system in the country. Are we going for No. 1?”

By unanimous vote the Library Board accepted the $32,575 low bid of Precision Controls for a new air conditioning unit for Thomas Library in Chesterton. Delco had submitted a $34,500 bid. The HVAC system at Hageman Library in Porter also will be upgraded.

The board voted to keep the non-Westchester Township resident fee of $150 for those individuals not covered by a reciprocal borrowing agreement with another library system, a contract or by the public library access card. The fee, which affects primarily non-Indiana residents, must be reviewed annually.

Library circulation at Thomas was up during May and down slightly at Hageman. Remodeling has affected patron usage at both buildings with tile replacement still ongoing. Year-to-date WPL has circulated 144,555 items compared to 152,966 last year through May. Public service units or individual occasions of service to a patron increased 3 percent over 2007 to 417,051 PSUs in the first five months.

The library will have a wheelchair at the entrance to Thomas Library for those needing one, announced Baugher. The board concurred with his decisions not to have WPL employees solicit donors and schedule appointments for a blood drive benefiting an Illinois company, and not to have WPL public-access Internet terminals equipped for management of public assistance benefits online.

Posted 6/12/2008