This paper provides background on the Library Services and Construction Act (LSCA) program, describes the context for making decisions about future priorities, and presents proposals for changes in the Utah State Library Division policies, services, and funding. A discussion on federal funding for library services includes a brief history of LSCA, current uses of LSCA, and prospects for future federal funding after the end of LSCA. State initiatives, administrative strategies for the State Library Division, policy themes, and the proposal structure are identified in terms of creating the future for statewide library services. Service functions are described for four areas: (1) library service for the blind and physically handicapped; (2) reference services; (3) resource sharing and interlibrary loan; and (4) collection development. For each of these services, clients, trends, specific issues and proposals are noted. A timetable from the spring of 1995 through the spring of 1997 and a response sheet are provided. An appendix presents a table of the fiscal year 1995 uses of the LSCA. (AEF)