Facing Money Troubles, Nylink Network To Phase Out Over Next Year

Merger not feasible but will find new service providers for members
Norman Oder -- Library Journal, 5/18/2010
•Impact of changed business relationship with OCLC
•18-member staff to lose jobs
•Unclear which organizations will take over services
As with several other networks that lost revenue in response to a changed business relationship with OCLC, Nylink, a nonprofit membership organization serving libraries in New York, is facing severe money troubles. Rather than merge into a large consortia—LYRASIS, formed last year, has grown to cover 33 states—Nylink will phase out its operations over the next 12 months.

Because the 37-year-old Nylink is part of the State University of New York and not an independent organization, it cannot be part of a merger. “However, we will be working with our members and with other organizations capable of providing similar services to absorb some of our functions,” Nylink said in an FAQ.

Financial challenges
Nylink—which serves some 500 libraries of various types, library systems and groups, museums, and cultural heritage organizations— has been funded through revenues and, while it is not in a deficit situation, it’s depleting its reserves.

“Unfortunately, the revenue just isn’t there any longer, and we have no choice but to wind down operations,” said W. David Penniman, Executive Director of Nylink. A change in the network business relationship with OCLC, effective July 1, 2009, meant that regional networks could no longer take their longstanding share of monies paid for OCLC services.

Nylink’s 18-member staff will continue to serve members while being provided outplacement support. Read more here.