This report describes a study designed to assess the client and staff libraries at each of the 11 California Department of Mental Health (DMH) and Department of Developmental Services (DDS) residential facilities to determine their existing resources and their ability to meet the requirements of the changing facility populations. The study methodology is described, including interviews with administrators, staff, and clients; site visits; a written survey of library statistics; and interviews with librarians. Summaries of 24 immediate, 32 short-range, and 19 long-range recommendations are also provided. A discussion of the findings indicates that the most acute problem in both staff and client libraries (which is primarily due to understaffing) is the inability to provide adequate services for most of the people the libraries are charged to serve. The primary recommendations focus on the need to change the interdepartmental, non-level-of-care "Staffing Standard" and to assign each library an annual budget determined by a funding formula. The needs for information services for Sacramento and community services staffs and for central coordination of library services are also addressed. Background information for the survey is included in 8 appendices, and the text is supplemented by 31 charts. (KM)