The NorthEast Research Libraries consortium has released a letter to publishers about the current collection development budget crisis its members face.

Here's an excerpt from the letter:

Financial officers in NERL institutions have been given–and shared with NERL–quite specific targets for budget discipline for the next 2 or more years. For example, in NERL's home institution, Yale University, reductions in our collections budget for FY 2009-2010 will be on the order of 10%, with a likely additional 5% already mandated for 2010-2011. Similar stories are told on many sides, with some of the heaviest impacts on the institutions among us that are the largest and have been the beneficiaries of important university endowments. Average actual dollar cuts across the NERL consortium are in the range of (minus) 4-5%, which we currently estimate as impacting overall buying power against normal increases on the order of (minus) 8-10%. . . .

Our goal with you and other information providers similarly placed is to find ways to achieve net price reductions in both next year and the year after. We hope to do this strategically and in partnership with you, in a way that allows us to stabilize a new working relationship on which to build in the years to follow. With some imagination and creativity, we hope we can strike new pricing models, or perhaps a menu of such models, which will enable institutions to do best by their faculty and students.

I hope and expect that we can do this thoughtfully, collegially, and in a spirit of mutual understanding and respect, realizing that the structural adjustments of these coming two years will impact and reduce permanently our ability to purchase content at pre-2008-09 levels.

Seven Association of Research Libraries member libraries are facing major planned or potential budget cuts. These examples suggest that significant budget cuts may be widespread in ARL libraries.

The Cornell University Library will have to cut around about $944,000 from the fiscal year 2010 materials budget.

"A reduction in the materials budget is in keeping with reductions across the university," said John Saylor, associate university librarian for scholarly resources and special collections. "It's unfortunate but unavoidable. The library is committed to maintaining and building a collection that ensures our lasting position among the top research libraries."

The Emory University Libraries have "already cut $200,000 from the current (2008/2009) collections budget" and more cuts are planned in FY 2010:

Fiscal Year 2010 will bring additional collection cuts as the library struggles to adjust a reduced budget to inflationary pressures which can range from five to ten percent. Chuck Spornick, Head of Collection Management for the General Libraries, estimates that almost $637,000 will need to be trimmed from the 2010 collections budget.

The MIT Libraries are faced with a $1.4 million budget cut this summer:

"As part of the Institute-wide mandate to reduce General Institute Budget expenditures in the 2010 fiscal year, the MIT Libraries are required to reduce their budget by 6%, or $1.4M by July 1, 2009. Further budget reductions are anticipated for FY2011 and FY2012."

The UCLA Libraries are facing a cut of over $400,00 this year alone:

Last Friday I received a memorandum from Executive Vice-Chancellor and Provost Scott Waugh detailing this request. I am meeting with campus administration today to further explore the implications for the UCLA Library. In the detail attached to EVC Waugh’s memorandum the library is slated for a $438,623 mid-year reduction for 2008-09 and the five percent reduction for 2009-10 of $1,830,201.

The University of Tennessee Libraries sent a February 16th memo to deans, department heads, and library representatives saying that they were "facing a potential 8% base budget cut. This cut represents reductions totaling $1,343,299 from the library’s operations, personnel, and collections budget."

The University of Washington Libraries have submitted a business plan to the Provost and Executive Vice President that reflects "levels of reduction in central support of 8%, 10%, and 12%." In dollar terms, these reductions are $2,457,962, $3,072,452, and $$3,686,943 respectively.

The Yale University Library is cutting its collection budget for the first time due to budget shortfalls:

This is the first time that the general University collections budget will be cut for economic reasons. Four or five years ago the Library's General Appropriation (GA) was reduced by 5%, but this reduction was not applied to the collections budgets. (On a couple of occasions in the last decade, the YUL general collections were reduced by $500,000 each, as part of a buying-power reconciliation.) This time will be different. As a result of the University's 25% endowment decrease, the following reductions will take effect: (1) the collections GA budgets will be cut by 5%, a decrease of around $300,000; and (2) the collections endowment budgets will see a 6.75% reduction, approximately $900,000. These reductions will take effect as of 1 July 2009 and may be repeated in future year(s).

In "Predictions for 2009," Peter Suber discusses the potential impact of the global recession on journal publishing, libraries, and open access (see "The Worldwide Financial Crisis and Recession Will Have Mixed Consequences for OA, but Will Yield More Gains Than Losses" section).

Related post: "University of Florida Libraries Propose to Cut Budget by over $2.6 Million."

Mike Rossner, Executive Director of the Rockefeller University Press, has published "A Challenge to Goliath" in The Journal of Experimental Medicine.

Here's an excerpt:

Megapublishers obligate librarians to buy hundreds of journals they do not need in order to access the journals their constituents actually read. The time has come to challenge this business model, which is unsustainable for the libraries.

The University of Florida George A. Smathers Libraries have posted a "2009-2010 Budget Reduction Proposal for the George A. Smathers Libraries, Including the Health Science Center Libraries" that details over $2.6 million in proposed budget cuts.

Read more about it at "2009-2010 Materials Budget Cuts by Circle," "2009-2010 Budget Reduction Proposal for the George A. Smathers Libraries, Including the Health Science Center Libraries," and "Budget Message to President Machen and Provost Glover."

In "Scholarly (Scientific) Journals vs Total Serials: % Price Increase 1990-2009," Bill Hooker analyzes serials cost data from various sources to generate price trends for STM disciplines.

In "Some Wishes Come True," he examines 1989-2009 price trend data for core clinical journals.

Thanks to Open Access News.

Library Journal has published "Reality Bites: Periodicals Price Survey 2009."

Here's an excerpt:

As waves of grim economic news wash over state and federal governments here and abroad, libraries of all types and sizes are bracing for budget cuts the likes of which have not been seen in three generations. Unlike most financial crises, this one is ubiquitous, with all but a handful of states in the red and getting redder. Globally, the meltdown is playing havoc with currencies, and the cost of journals priced in currencies other than the pound, the euro, or the U.S. dollar have skyrocketed. Severe losses in endowment revenue, which in the past insulated materials budgets to a degree, have left even larger and wealthier libraries facing cuts.

A number of librarians expect the budget cuts to be permanent; others say funds will rebound, but the recovery will take years. Even if the recession is less severe than feared, experts say not to expect relief before 2012. In journals parlance, that’s three renewal cycles from now—more than enough to stress publishers without deep reserves. For an industry that is already in the throes of reinventing itself, this recession will hit hard.

The Research Information Network has released Scholarly Books and Journals at Risk: Responding to the Challenges of a Changing Economy

Here's an excerpt from the announcement:

The current economic difficulties across the globe bring serious risks to scholarly books and journals. In the UK, the recent dramatic fall in the value of sterling has seriously damaged university library purchasing budgets.

This briefing note aims to inform and motivate all key stakeholders—universities, funding bodies, researchers, librarians, and publishers—to work together to find creative, practical and sustainable solutions to this serious (and unforeseen) challenge to the vitality of the UK’s research base.

The Virginia Tech University Libraries will reduce journal subscriptions by almost $900,000 in the 2009-2010 budget year.

Here's an excerpt from "Library to Cut Nearly $1 Million":

Hitchingham [Dean of University Libraries] said that the university must cancel $500,000 worth of subscriptions to accommodate library budget cuts. They must also cover $400,000 worth of cuts to meet inflationary cost increases.

The Association of Research Libraries has released "ARL Statement to Scholarly Publishers on the Global Economic Crisis."

Here's an excerpt from the press release:

The ARL statement includes a set of recommendations that are based on the belief that scholarly publishers who are committed to enhancing the effectiveness of the scholarly communication system are prepared to act to minimize negative impacts on the system resulting from economic conditions. Among other strategies, the statements calls for publishers and vendors to adopt flexible approaches to pricing and avoid reducing content or access as libraries seek to renegotiate expenditures. ARL encourages publishers to consult widely with research libraries in developing responses to the current economic environment. Small, not-for-profit publishers are of particular concern, and ARL member libraries welcome conversations regarding new publishing models that can reduce the cost and vulnerability of established publications of high value.

One of the recommendations is:

Libraries serving research organizations are increasingly receptive to models that provide open access to content published by their affiliated authors in addition to traditional subscription access to titles. This kind of model can form a bridge from subscription models to models incorporating author-side payments

The Greater Western Library Alliance has joined the Sponsoring Consortium for Open Access Publishing in Particle Physics (SCOAP³) for 18 of its member research libraries.

Here's an excerpt from the About SCOAP³ page:

To address this situation for HEP and, as an experiment, Science at large, a new model for OA publishing has emerged: SCOAP³ (Sponsoring Consortium for Open Access Publishing in Particle Physics). In this model, HEP funding agencies and libraries, which today purchase journal subscriptions to implicitly support the peer-review service, federate to explicitly cover its cost, while publishers make the electronic versions of their journals free to read. Authors are not directly charged to publish their articles OA. . . .

Each SCOAP³ partner will finance its contribution by canceling journal subscriptions. Each country will contribute according to its share of HEP publishing. The transition to OA will be facilitated by the fact that the large majority of HEP articles are published in just six peer-reviewed journals. Of course, the SCOAP³ model is open to any, present or future, high-quality HEP journal aiming at a dynamic market with healthy competition and broader choice.

Elsevier has made public a letter to librarians stating that it is targeting "a global average list price increase of not more than six percent" for its journals in 2009. It notes that "the 2008 average list price increase across all STM publishers was 8.70% in Europe and 10.10% in the U.S."

Elsevier is taking author publication fees into account for pricing a subset of its journals: "For individual journals, we are realigning prices to reflect a number of factors, including differences in the number of articles made available, quality, and usage, as well as new factors such as Sponsored Articles." (The Sponsored Articles program allows authors publishing articles in over 40 journals to pay a $3,000 fee to make them open access.)

The letter also states that there were over 386 million articles downloaded from ScienceDirect in 2007, with over 460 million downloaded articles being anticipated in 2008.

The Greater Western Library Alliance, a consortium of 31 research libraries, has expressed interest in the SCOAP³ project. The Greater Western Library Alliance joins a growing list of U.S. institutions interested in the SCOAP³ project.

Here's an excerpt from Towards Open Access Publishing in High Energy Physics: Executive Summary of the Report of the SCOAP³ Working Party that explains the project:

The proposed [SCOAP³] initiative aims to convert high-quality HEP journals to OA, pursuing two goals:

• to provide open and unrestricted access to all HEP research literature in its final, peer-reviewed form;
• to contain the overall cost of journal publishing by increasing competition while assuring sustainability.

In this new model, the publishers’ subscription income from multiple institutions is replaced by income from a single financial partner, the "Sponsoring Consortium for Open Access Publishing in Particle Physics" (SCOAP³). SCOAP³ is a global network of HEP funding agencies, research laboratories, and libraries. Each SCOAP³ partner will recover its contribution from the cancellation of its current journal subscriptions. This model avoids the obvious disadvantage of OA models in which authors are directly charged for the OA publication of their articles. . . .

In practice, the OA transition will be facilitated by the fact that the large majority of HEP articles are published in just six peer-reviewed journals from four publishers. Five of those six journals carry a majority of HEP content. These are Physical Review D (published by the American Physical Society), Physics Letters B and Nuclear Physics B (Elsevier), Journal of High Energy Physics (SISSA/IOP) and the European Physical Journal C (Springer). The aim of the SCOAP³ model is to assist publishers to convert these "core" HEP journals entirely to OA and it is expected that the vast majority of the SCOAP³ budget will be spent to achieve this target. The sixth journal, Physical Review Letters (American Physical Society), is a "broadband" journal that carries only a small fraction (10%) of HEP content; it is the aim of SCOAP³ to sponsor the conversion to OA of this journal fraction. The same approach can be extended to another "broadband" journal popular with HEP instrumentation articles: Nuclear Instruments and Methods in Physics Research A (Elsevier) with about 25% HEP content.