There is significant inequality in funding public libraries in Michigan, and there is every likelihood that there will be increased instability in that funding if action is not taken immediately. The objectives of this study included the following: provide an analysis of how public libraries in Michigan are currently funded; identify current threats to revenue streams and comment as appropriate; conduct a policy analysis of existing statewide laws affecting the funding of Michigan public libraries; describe the funding relationships between library cooperatives and public libraries and how such funding relationships might evolve in the future; provide a means of dealing with covering the cost of inflation when considering any funding formula for public libraries and cooperatives; identify existing funding models in other states that could be adapted to Michigan; and initially, develop a strategy to gain the support of public libraries throughout the state and subsequently, the state legislature for the recommended funding model. The overall goal of the study was to recommend possible approaches for addressing the specific funding problems identified through the research and outline a strategy for the systemic implementation of potential solutions. Findings suggest that there is considerable support for a combined short-term and long-term strategic effort. Public libraries in Michigan need immediate and significant relief as soon as possible, but they also need a long-term strategy to address a range of legal/statutory problems. Chapters are: (1) Introduction; (2) The Current Context of Michigan Public Library Funding; (3) Examining Peer State Public Library Funding; (4) Michigan Law Summary; (5) Survey Data Analysis; (6) Site Visits; and (7) Developing a Strategic Plan for Equitable and Stable Public Library Funding. Appendices include: funding issues report; Finance Study Committee Report to PLFIG; Valuation of a Mill Across Michigan table; Public Library Reliance on Voted Millage table; Penal Fine Reliance (1999) table; Michigan Cooperative Library Survey; and Finance Study Committee Report. Twenty-eight tables, figures, and charts are included throughout the text. (AEF)