This study evaluates the effectiveness of public library federal funding as a basis for recommendations for improvements in the federal system. Effectiveness is measured by: (1) state-by-state analysis of public library finance characteristics and changes; (2) examination of the federal role and funding, particularly the Library Services and Construction Act (LSCA) in comparison with proposed Library Partnership Act of 1974; (3) inventory of state public library aid programs; (4) analysis of the impact of revenue sharing on local and state public library support; and (5) data from a questionnaire sent to chief library officers in each state. The study concludes that federal funding under the LSCA and revenue sharing have been moderately effective in assuring public library services to all citizens. The basic recommendation is to revise the LSCA to assist states and localities in developing and distributing public library services as part of a national plan, and to expand network development. A bibliography and an index of the fiscal capacities of the states are appended. (KP)