A study focused on library formula budgeting practices with a special concern for the typical upper division university functioning in a state system of higher education. The basic objectives of this research project were to develop a model budget for upper division university libraries and to demonstrate the use of formulas in predicting the anticipated resources necessary to operate and maintain upper division university libraries (UDUL). Existing formulas were examined and evaluated. These, together with the UDUL models, were field tested in application at ten upper division institutions. The UDUL formulas were evaluated by a panel of experts and, finally, conclusions and recommendations were drawn concerning the feasibility and utilization value of a formula designed for upper division university libraries. The scope of the study was limited to formula budgeting. The UDUL formulas developed cover all major budget categories commonly found in academic libraries, i.e., salaries, materials, and expense. A physical facility formula was excluded, since it is not typically part of an annual operating budget. (Author/SL)