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Our library has actually been doing pretty well budget-wise, although I know of a few area towns that are having problems.
I can tell you that usage demand is way up though. There's been a couple of evenings that I've gone up to the library and haven't been able to get a parking place in their lot. That's pretty significant.
Growing eBook demand does decrease demand in some other areas, but not a direct correlation. For instance, put Janet Evanovich's new release out on Overdrive and then the inter-library loan system won't be shipping the same 10 books on the truck from town to town for the rest of the year.
It's just like with anything else. You try to put your money where it does the most good. As eBook demand goes up, it'll attract more of a budget.
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