The National Library Service for the Blind and Physically Handicapped (NLS) commissioned a study to determine the baseline costs of operation for the network of libraries and agencies that provide braille, playback machine, and recorded book services to patrons of the free national program. A 15-year projection of costs was also prepared. The approximate costs of network operations for the federal fiscal year 1989 were $3,154,000 for braille book services, and $7,724,000 for playback machine services, and $30,181,000, for recorded book services, for a total of $41,058,000. These numbers represent expenses incurred by state, local, and private agencies in the network, and exclude costs for materials or equipment, which were covered by the NLS. The NLS also incurred approximatley $805,000 in costs for its multistate centers (MSCs). In fiscal year 1989, the network consisted of 56 regional libraries, 92 subregional libraries, 8 machine lending agencies, and 3 MSCs. The 15-year projection of network costs was based on the cost behavior of 35 sample sites, operational statistics as reported to NLS by network libraries and agencies, and unit occupancy costs compiled by the General Services Administration (GSA). Independent mathematical relationships relating the costs for the sample sites to their associated operational statistics were developed for regional and subregional libraries for the three services under study and for three major cost categories: labor, occupancy, and all other costs. It is projected that costs in the 15th year will have increased to $91,601,419 ($6,134,726, $17,415,106, and $68,051,587 for braille book, playback machine, and recorded book services respectively). Supporting data and cost prediction models are appended. (SD)