The library administration and board of trustees anticipate a 5.99 percent increase in the library budget for fiscal year 2003-04. This increase is being driven primarily by state-mandated costs over which the library has no control. The issue rests with the contribution required by the New York State Retirement system. Library contributions over the past several years have remained low while the Retirement System enjoyed lucrative returns from its stock market investments. When the stock market went into a downturn after Sept. 11, 2001 the Retirement System advised members to plan for a payment of three to four percent of their payroll.

On Feb. 7, State Comptroller Alan Hevesi issued a warning that this year's contribution may be as high as 11 percent. Hevesi predicts that New York State's pension costs could rise to as high as $1.1 billion for fiscal year 2004, up ftrom $138 million in fiscal year 2003. This increase will be passed on to New York's local governments (including libraries and school districts) if there is no improvement in the stock market over the next two months.

The library has had to approach the 2004 budget as an austerity package, cutting costs where possible to supplement retirement system funding which is projected to jump from the current allocation of $10,000 to $195,000 (or eight percent of the library's payroll)

Hevesi's estimates are based on the value of the pension fund as of Jan. 31. The final pension bill will be determined by the value of the pension fund on March 31 of this year.