Outsourcing the Local Library Can Lead to a Loud Backlash

Fargo Library Children's Room

By Melissa Maynard, Stateline Staff Writer, Pew Center on the States

Hardly anyone in the general public realizes it, but LSSI, which runs 68 branch libraries in California, Kansas, Oregon, Tennessee and Texas, is now the fifth largest library system in America.Last month, three public libraries in the Los Angeles suburb of Santa Clarita ditched the L.A. County public library system, the biggest in the nation. To save money, they turned instead to a little-known but fast-growing private competitor, the Maryland-based Library Systems and Services International (LSSI).

Quiet though it has been, the rise of LSSI has attracted its share of critics, not just at the local level but in the increasingly nervous network of public library systems around the country. As city budgets tighten and privatizing services becomes more politically acceptable, LSSI keeps attracting interest from cash-strapped communities searching for ways to keep their libraries in good working order without spending more than they can afford. LSSI so far has no competitors in the private sector because, according to CEO Brad King, no other company has dared to go “where angels fear to tread.”

Indeed, there’s something for them to fear. LSSI has received consistently icy receptions in most of the places where it has come in and taken over. Every community has its share of library users who believe that a library system is a core function of local government, regardless of what the budget situation is. Some are turning to state lawmakers to pass legislation that would make library privatization more difficult.

Stockton, California, ultimately decided to continue running the Stockton-San Joaquin Public Library as a public entity earlier this year because of stiff local opposition to the concept of privatizing it. LSSI had promised to spend at least $800,000 more each year on books and materials while improving customer service and expanding operating hours by “as much as 47 percent” — a tempting offer for a library with few attractive options. But local residents either didn’t believe that or didn’t see it as sufficient incentive to take the library out of public control.

Some communities have tried going private and then changed their mind. The city of Fargo, North Dakota, signed up with LSSI but was dissatisfied and eventually reverted back to public-sector management. But it’s probably fair to say that most of the privatizations have gradually won public acceptance, especially when libraries have lengthened hours and expanded services and collections under LSSI management.

Challenge to unions

The American Library Association has had an official policy statement in opposition to library privatization on its books since 2001, but ramped up its involvement in the issue this year. Many in the profession were rankled by a quote in a 2010 newspaper article from LSSI co-founder Frank Pezzanite: “LSSI has a track record of re-hiring staff from the libraries that it takes over, and claims to offer industry-competitive wages. But union protections and defined-benefit pension plans usually disappear, with a company-matched 401(k) plan in its place. A lot of libraries are atrocious. Their policies are all about job security. That’s why the profession is nervous about us. You can go to a library for 35 years and never have to do anything and then have your retirement. We’re not running our company that way. You come to us, you’re going to have to work.”

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Outsourcing the Local Library Can Lead to a Loud Backlash

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