RACINE - Library revenue from government sources has remained relatively constant since 2006 despite rising library expenses. Racine Public Library staff members say this has resulted in cutbacks on multiple levels.

The library, 75 Seventh St., is funded primarily through fine payments and city, county and state taxes, according to library budgets.

The money from each revenue source has remained constant since 2006 even though library expenditures have increased by about $469,000 since 2005, said Dan Schultz, library business manager.

Annually, city property taxes provide just more than $2 million. State appropriations account for $20,000, the county provides approximately $1.3 million and fines and fees bring in a little more than $100,000, according to library budgets from 2006 to 2008.

Library revenue has remained at these levels because of state law and state legislative

decisions.

Questions on library funding and tax burden equality prompted the Racine County Board Committee of Finance and Human Resources to compile a report on library funding. Released in June, the report finds Racine County spending and taxing for library services is less than in almost every other populous Wisconsin county.

In Racine County, there are five public libraries, located in Racine, Burlington, Rochester, Union Grove and Waterford.

At the county level, libraries are funded through a library levy, or a tax on property in all municipalities without libraries. The 1989 Library Services Agreement sets parameters for determining that levy based on circulation numbers and claimable costs. The agreement is between the county and the Lakeshores Library System, which oversees libraries in Racine and Walworth counties.

Circulation numbers show the number of materials loaned yearly and who they were loaned to. Claimable costs are a library's operating costs excluding fines, donations and funds remaining from the previous year. Libraries' claimable costs also include access payments to other libraries for use by Racine County residents.

Based on the agreement, the county has paid more than 100 percent of libraries' total claimable costs since 2001, according to the report.

At the municipal level, residents with libraries pay for library services through property taxes. A state law requires municipalities and counties pay libraries at least 70 percent of their operating costs and at least the average paid during the previous three years.

"What happens when you have a three-year average is that, after a while, the three-year average is always the same. So it's just about a flat line," Schultz said. "When you have revenues that are flat but expenses are going up every year, you get squeezed. There's no fat in your budget so you have to start cutting."

The city has followed the three-year average rule for the past several years, said City of Racine Finance Director David Brown.

Brown said property tax levy limits set by the state Legislature also determine how much funding the city gives the

library.

"Our borders are locked. Land is developed. Racine is not growing so we cannot increase (property taxes) more than 2 percent," Brown said.

He said this restricts the amount budgeted for all city operations including the library. If the City Council gave more funding to the library, they would need to take money from other departments.

The Racine County Board tries to make the county levy tax burden equal to city levy taxes. The board does this to maintain equality between the tax burdens of those living within and outside library municipalities, according to Karen Nelson, Finance and Human Resources Committee chair.

To maintain this equality, the county is unlikely to raise its library funding unless the city does the same, said Geoff Greiveldinger, chief of staff for the Racine County Executive's Office.

"You can't say it's the fault of elected officials because their hands are tied," library Director Jessica MacPhail said.

Based on the state law and property tax limit, there is no light at the end of the tunnel for the library's funding woes and cutbacks, said Tom Friedel, president of the Racine Public Library Board of Trustees.