This annual report on the comprehensive five-year program for the enhancement of libraries in New York State achieves the following: (1) provides a benchmark for the continuing planning, development, and evaluation of state library services; (2) summarizes the objectives, policies, and programs undertaken for the improvement of those services; (3) serves as a guide to library networks, regional planning groups, and other agencies that wish to participate in the Federal Library Services and Construction Act (LSCA) program; and (4) meets the LSCA requirements. An overview of the state library environment is offered; library systems and networks are profiled; statewide resource sharing and technological change are summarized; constraints on services are outlined; and the program's goals and objectives are discussed. Tables provide summary statistics on public, academic, school, institution, and medical libraries; the New York State Library; public library systems; systems and libraries by region; and state appropriations for higher education. A 23-item bibliography of major documents for the New York State library service program and lists of New York members of the LSCA Advisory Council and the Regents Advisory Council on Libraries are also provided. "LSCA Program Purposes--Needs and Intended Actions" and "Policy Guidelines on the Administration of LSCA Funds 1987-88" are included as supplements. (KM)