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As 2017 is the last year of the current five-year business model , working with the Member Advisory Board (MAB), the arXiv team has created a sustainability model for 2018–2022. The purpose of the plan is to lay out a business model for arXiv including anticipated expenses, potential revenue streams, value propositions, and communication strategies. The plan entails only the regular operation of arXiv—in other words, what we call “keeping the lights on.” It should be seen as a baseline operational budget, as it does not factor in additional expenses required for R&D or new development projects such as arXiv-NG.
What
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was arXiv’s financial model through 2017?
Since 2010, Cornell’s sustainability planning initiative has aimed to reduce arXiv’s financial burden and dependence on a single institution, instead creating a broad-based, community-supported resource. arXiv’s funding and governance for the current operation (Classic arXiv) is based on a membership program engaging libraries and research laboratories worldwide that represent the repository’s heaviest institutional users. As of February 2017, we have 206 members representing 25 countries. arXiv’s sustainability plan is founded on and presents a business model for generating revenues and a set of governance, editorial, and financial principles. Cornell University Library (CUL), the Simons Foundation, and a global collective of institutional members support arXiv financially. The financial model for 2013–2017 entails three sources of revenues:
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What is the tier model for 2018–2022?
Tier | Current Fee | New Fee |
Tier 1: 1–25 | $3,000 | $4,400 |
Tier 2: 26–50 | $3,000 | $3,800 |
Tier 3: 51–100 | $2,500 | $3,200 |
Tier 4: 101– 150 | $2,000 | $2,500 |
Tier 5: 151–200 | $1,500 | $1,800 |
Tier 6: 201+ | $1,500 | $1,000 |
Note: The goal of Tier 6 is to provide an equitable and affordable fee to allow participation. Although we focus our membership drive on the top 200 institutions, we would like to encourage other libraries to contribute.
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The draft budget factors in support only for the routine, daily arXiv operation. It does not include resources needed for significant improvements, emergency interventions (server failure), special projects, or research and innovation. This budget does not consider the nascent arXiv-NG initiative as the new development initiative needs to be supported by an additional fund raising effort. As we transition from Classic arXiv (current system) to arXiv-NG in approximately 2020, the annual expenses will need to be adjusted, taking into consideration the staffing needs of the new architecture.
arXiv Summary Budget | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Revenue | ||||||
Member contributions | $400,000 | $500,400 | $500,400 | $500,400 | $500,400 | $500,400 |
Simons Foundation Annual Commitment | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Simons Foundation Matching Fund | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 | $300,000 |
CUL Direct Contribution & Leadership 1 | $75,000 | $170,000 | $170,000 | $175,000 | $175,000 | $180,000 |
Online donation program & gifts | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
Total Revenue | $925,000 | $1,120,400 | $1,120,400 | $1,125,400 | $1,125,400 | $1,130,400 |
Expenses | ||||||
Direct Expenses | $925,000 | $1,044,600 | $1,066,103 | $1,097,551 | $1,124,792 | $1,157,851 |
Indirect Expenses | ||||||
College and dept administration and staff support 2 | $240,500 | $271,596 | $277,187 | $285,363 | $292,446 | $301,041 |
Facilities 3 | $101,750 | $114,906 | $117,271 | $120,731 | $123,727 | $127,364 |
Total Indirect Expenses | $342,250 | $386,502 | $394,458 | $406,094 | $416,173 | $428,405 |
Contribution to Reserve | $0 | $75,800 | $54,298 | $27,849 | $608 | -$27,451 |
Notes:
- In 2018, CUL’s direct financial contribution will increase from $75,000 to $170,000, including the salary of Program Director (.40 FTE) as a bridging strategy until we identify additional revenue sources. The MAB recommended that the Program Director's salary be considered a direct cost due to its prominent and necessary role. Prior to 2018 this position has been included with indirect costs.
- University-negotiated indirect cost rate for administration & staff support (HR, finance, facility & IT); based on direct costs (less CUL in-kind staff contribution) at 26%. Includes McLaren (0.2 FTE), Steinhart (0.1 FTE), Bolduc (0.15 FTE).
- University-negotiated indirect cost rate for maintenance, custodial & other facility-related costs; based on direct costs (less CUL in-kind staff contribution) at 11%.
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What is the staffing configuration for Classic arXiv?
Position Description | Staff | 2018 | 2019 | 2020 | 2021 | 2022 |
User support (management + staff + student) | 1FTE Entwood, 1FTE Weiskoff, 1FTE Salguero, 0.5FTE Goldweber, 0.6FTE students | 4.1 | 4.1 | 4.1 | 4.1 | 4.1 |
IT (management + staff) | 1FTE Lessmeister, 1FTE Caruso, 0.5FTE Fielding, 0.5FTE Perez, 0.50FTE Barker (CAC) | 3.5 | 3.5 | 3.5 | 3.5 | 3.5 |
Leadership: Program Director , Scientific Director, CTO | 0.4FTE Rieger , 0.4FTE Scientific Director, 0.3FTE Payette | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 |
Membership, Finance, Policy– included in indirect | 0.2FTE McLaren, 0.1FTE Steinhart, 0.15FTE Bolduc | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 |
Total FTE: | 9.15 | 9.15 | 9.15 | 9.15 | 9.15 |
Green indicates staff lines that are not included in the budget as they are considered CUL’s contributions.
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