Program budgeting, a method founded in the systems approach, allows control, management, and planning in the library system, and avoids the more comprehensive analysis required by zero-based budgeting. By evaluation of the impacts of the work accomplished by the library staff, the budgeted amounts can be justified or adjusted in subsequent years. Using the program budgeting structure, the data in a graduate school can be analyzed and the budget of the graduate school library can be focused on the values of the school. Staff and materials expenditures are two major budget categories that require special attention. Program budgeting also facilitates planning on a 5-year basis by predicting inflation increases and taking into account trends in the impacts of the library. The arrangement of program structure focused on the library as a subcategory, a bibliography, and several illustrative tables are included. (KM)