This paper focuses on the identification and implementation of an adequate and appropriate funding mechanism or mechanisms for the funding of rural library services in Idaho. It is noted that the data for the report were taken primarily from the U.S. Bureau of the Census, with additional data from a 1990 survey of state library officials. The funding problem is examined in the context of local government revenues, noting that the property tax is the source of most of the public library budget; property tax limitations that were enacted into state law in 1978 are inspected; Idaho's reliance upon special districts to provide a significant portion of its library service is noted; public library funding by city governments, state aid, and alternative revenue sources are also studied. Five policy recommendations conclude the report: (1) supporters of public libraries in Idaho should continue to emphasize the link between economic development and libraries; (2) local option taxes and/or fees should be authorized to give library and other local officials the right to determine the appropriate revenue mix for their area; (3) the same majority approval requirement--a simple majority--should be required for library override elections as for school district elections; (4) additional revenues should be allocated from the state general fund to purchase the new technologies that may be required to extend services to remote and unserved areas; and (5) the current property tax limitation law should be repealed. Ways in which other states have addressed similar problems are cited and their policies are compared with those of Idaho throughout the paper. Nine tables display data on various aspects of public library and municipal expenditures in Idaho and other western states. (BBM)