The present public library financing system is described and assessed, and the key issues for consideration in either reaffirming its continued use or in the development of new approaches are delineated. Special emphasis is given to illuminating those issues and factors affecting metropolitan areas--both core city and suburban fringes. The perspective includes Federal, state, and local legal bases, policies, and mechanisms used in financing public libraries' capital and operational needs. The issues provide information essential to the development of alternative role and funding options for consideration at the Federal level. The inquiry also suggests the need for the possible directions of additional research required to resolve the issues developed. The examination is based on secondary source data and available research materials and did not involve any new assessment of library service needs of the collection of new data on funding levels among local communities. A 27-item bibliography is appended. (Author/PF)