REFEREED ARTICLE The economic crisis and its effect on libraries Charles I. Guarria and Zhonghong Wang Brooklyn Campus Library, Long Island University, Brooklyn, New York, USA Abstract Purpose – The purpose of this paper is to examine the recent recession in the USA and its impact on libraries. It illustrates how libraries are coping with the fiscal constraints and challenges this economic climate imposes. It seeks to provide timely feedback and best practices from librarians and administrators (mostly academic) regarding measures they are taking and their plans for the future. Design/methodology/approach – The literature review reveals news regarding library budget cuts and their impact on collections, operations, and personnel. Two online surveys were conducted, one of the library community at large, the other of the Association of Research Libraries (ARL) deans and directors. Findings – A majority of the libraries have experienced flat or reduced budgets and many expect additional budget cuts in the immediate future. Key areas affected include collections/materials, professional development/travel, supplies/equipment, personnel and hours of operation. Survey respondents suggest that library administrators and librarians should examine workflow to increase efficiency, prioritize projects, and adopt creative measures. Practical implications – This article provides informative and practical suggestions for those managing budgets in difficult economic times. Originality/value – Data collected provide a snapshot of the financial constraints libraries currently face. It provides practical lessons and suggestions for library administrators and librarians seeking to cope with flat or reduced budgets while maintaining quality services. Keywords Academic libraries, Budgets, Economics, United States of America Paper type Research paper Introduction The US economy has suffered many economic contractions since its beginning in 1776 with the Panic of 1797 and leading to the recession of 2007-2009. In all, the US economy has had a total of 21 panics, recessions or depressions (National Bureau of Economic Research, 2008). Since the Second World War, the average economic contraction has lasted ten months (National Bureau of Economic Research, 2008). The most recent recession went beyond that average as it lasted nineteen months. In 2008, 2.8 million people lost their jobs making it the highest annual level of job losses in the USA in 60 years (Goldman, 2009) – that is, until 2009 when 4.7 million people lost their job (Barker and Hadi, 2010, p. 1). Owing to the recent recession, companies have been forced to seek government assistance, merge, or go out of business. A similar effect is being felt throughout academia as librarians and library administrators, not immune to the economic The current issue and full text archive of this journal is available at www.emeraldinsight.com/0307-4803.htm This article has been developed and expanded from a roundtable discussion and a poster presentation given by the authors at the American Library Association Annual Conference in Chicago, July 2009. The economic crisis and libraries 199 Received 16 April 2010 Reviewed 23 July 2010 New Library World Vol. 112 No. 5/6, 2011 pp. 199-214 q Emerald Group Publishing Limited 0307-4803 DOI 10.1108/03074801111136248