This progress report for the first year of a 3-year pilot project to establish systematic cooperation among public school districts and non-public schools in the provision of library resources and services to students and faculty includes funding recommendations for additional projects and evaluation. This project addresses needs for union catalogs of library materials, reciprocal access to library materials, efficient delivery systems, and the effective use of computer technology. Participants include seven library systems, eight Boards of Cooperative Educational Services, 135 school districts, and 40 non-public schools. Much of the initial work has centered on needs assessment, organization, governance decisions, and planning. The project sought voluntary cooperation and applications for the project have outrun expectations, resulting in commitment of resources greater than initially envisioned; the department recommends funding for three additional school library system pilot projects, adjustment of existing pilot project appropriations to accommodate increased participation of school library systems, adjustments for inflation, and funding for a comprehensive evaluation of these projects. The report includes individual fact sheets from the cooperating agencies and appendices provide legal and regulatory excerpts, together with directory information on the project participants. (RAA)