This annual report on a comprehensive 5-year program for the improvement of library services in New York State is intended to: (1) provide a benchmark for the continued planning, development, and evolution of library services in the state; (2) summarize the objectives, policies, and programs undertaken for the improvement of library services, particularly those that the Federal Library Services and Construction Act (LSCA) helps to finance; (3) provide current, basic information on libraries and library systems in New York; (4) serve as a guide to library systems, regional planning groups, and other agencies that wish to participate in the LSCA program; and (5) meet LSCA requirements. The report begins with an overview of libraries in the state and their political environment. Libraries, library systems, and networks are described in the second section, and the third discusses library resource sharing and technological change. Constraints on library services and priority needs are covered in the fourth section; the fifth summarizes state and LSCA goals; and the report concludes with a discussion of 10 library program objectives. A 26-item bibliography is included. (SD)