The National Library Network, Its Economic Rationale and Funding. National Program for Libraries and Information Services Related Paper No. 9.

A study was made to develop a rationale for determining the economic justification for a national program of library and information services as described in the second draft of the National Commission on Libraries and Information Services Program Document. The economic rationale is based on improved cost effectiveness and improved utilization of capital resources. In finding formulas for assignment of financial responsibility to various levels of government and segments of society, several principles must be considered. Public, academic, special, and school libraries should continue to be funded by their constituencies with state and federal help where needed, while new public libraries should be funded by a mix of local, state, and federal funds. System, state, regional, and national resources should be supported by their constituencies, but should be given state and federal aid for services provided outside their constituencies. The federal government should fund the capital costs of the network, while the capital costs of resources should be born by the private sector or the constituency served. Research, development, and staff training should be funded by the responsible institutions, but the federal government should fund programs to meet the needs generated by the national network. (Author/LS)