This summary reports the findings of a study conducted for the New Jersey State Library (NJSL) with two major objectives: (1) to determine how much it costs two State Contract Libraries (the Central Library of the Newark Public Library and the Bureau of Law and Reference of the New Jersey State Library) to provide supplemental question handling and interlibrary loan and photocopying services to libraries in New Jersey; and (2) to provide NJSL with recommendations regarding compensation strategies for the next 5 years. The summary defines concepts discussed in the study, summarizes the methodology used to develop a cost finding model, describes two survey instruments used to gather data on the use of staff time and characteristics of reference sources, summarizes results on marginal and average costs, and presents recommendations concerning compensation and investment strategies. (GL)