The Educational Priorities Panel (EPP) conducted a mail survey of New York City school library staff, a telephone survey of community school districts, and an analysis of budget and payroll data for library services. Additionally, two member agencies, the Citizen's Committee for Children and the Women's City Club, undertook a cooperative study on school library services. Findings from the various efforts are offered in this report, which focuses on: current school library services in the New York City public schools; expenditures for library materials and how they compare with national trends (46% of the schools in the community school districts reported having no funds available to purchase new materials); and the current situation of library staff (budget figures indicate that 80% of the elementary schools do not have a certified teacher assigned to the library). The various surveys indicate a low priority for library programs in the elementary schools and an even lower priority for library services for the lowest grades. Following a brief discussion of the impact of this low priority, the report recommends that funds be earmarked for library materials; that an additional appropriation of $70,000 per district be made for the 32 community school districts to hire trained staff; and that all funds for both staff and materials should be contingent on (1) a maintenance of effort by districts; and (2) the development of a district-wide plan. (THC)