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Riverside County Libraries Go Corporate To Meet Budget

POSTED: 3:47 pm PST November 18, 2009
UPDATED: 7:19 pm PST November 18, 2009

With San Diego facing budget problems, city leaders are searching for ways to save local libraries. Yet, 10News learned how Riverside County was able to turn its own budget woes into a thriving library system.

Books are plentiful and the doors are open every day of the week at the Temecula Public Library, which is not totally public.

More than a decade ago, anticipating a budget shortfall, the Riverside County became the first to hire a private company to run its libraries.

After the company Library Systems and Services took over with the same $5 million budget, the library hours increased by 34 percent, and the book budget doubled. Services for children have expanded, along with book selection.

To make it all work, public workers like Rosie Vanderhaak became private employees and were forced to say farewell to pensions in favor of 401(k) plans.

"It was not easy to say goodbye," said Vanderhaak.

Staffing at the libraries was streamlined as the company injected a corporate philosophy. For example, a high-tech book sorter now being used takes the place of four employees.

"Your critics say if there are profits to be made, why not allow a community to run it so those profits can go back to the community," 10News' Michael Chen asked Mark Smith of Library Systems and Services.

"We can provide a better service than what they're used to at the same or reduced amount," said Smith.

Riverside County recently rewarded the company with another five-year contract.

Meanwhile, Vanderhaak is left with a struggling 401(k) account, but also a job she loves.

"It was the right decision for me," said Vanderhaak. "We're actually thriving at Temecula Public".

It is a success story the company predicts more and more communities will check out.

Smith said his company now runs 61 libraries across the country.
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