In the fall of 1996, Congress passed the Library Services and Technology Act (LSTA) as part of the Omnibus Budget Reconciliation Bill. The bill challenges librarians to become more collaborative, encourages resource sharing and cooperation among all types of libraries, and shifts the focus of federal funding to technology. This report describes projects funded under the last year of the Library Services and Construction Act (LSCA) as well as the beginning of the new initiatives undertaken. Grant awards are listed by library in each district under LSCA Title I Projects: Improving Public Library Services and LSCA Title III Projects: Sharing Library Resources. Quotes from library staff and users on the benefits of various services and resources are included for each district as well. A summary of LSCA Title I competitive and non-competitive subgrants awarded in FY 1997 and LSCA Title III subgrants awarded in FY 1997 is provided at the end of the report. The Library of Michigan's LSCA Program Goals are also outlined, and a map of Congressional Districts (1997) is provided. Three new electronic library services--AccessMichigan, MEL and SPAN are briefly described. (AEF)