This report presents comprehensive recommendations in the library budget formula area for public 2- and 4-year institutions in Washington based on recommendations adopted by the council in 1976 with some revisions. A review and analysis of statistical data supplied by the 4-year institutions and community college system in the areas of staffing, collections, usage, acquisitions, and institution size, provides the basis for the recommendation that the library resources portion of the formula be stated in terms of number of acquisitions per year, based on mathematically determined relationships of acquisitions to collection size derived from the experience of comparison institutions and states. These acquisition units would then be converted into dollar amounts based on each institution's experienced unit costs adjusted for inflation. Questions were raised regarding staff years, branch libraries, and the standard dollar amounts for staff years and binding. These questions were primarily related to the interpretation of the recommendations and accompanying definitions and guidelines contained in the council's final report. As a consequence, slight modifications to three recommendations, more explicit guidelines, and specific examples of interpretations of recommendations have been added to the "Operations Element" section of the report. (Author/CWM)