In academic libraries, online searching services and reference departments often have to compete for a share of financial and personnel resources. This paper examines how San Jose State University Library solved the problems of shrinking budgets, space constraints, and loss of trained searchers by integrating the online search service into the reference department. The process of simultaneously providing patron services and training online searchers is described; and recommended policy and procedure adjustments, funding projections, space considerations, and problems encountered during the integration process are considered. It is concluded that integrating the online search service into the reference department is a good method for maximizing the resources at hand while planning for development and growth, and would be an especially effective alternative for academic libraries faced with budget cuts as well as libraries planning to add online search services. Statistical data are presented in three tables, and references are provided. (Author/KM)