For over a half a century, State Library Administrative Agencies (SLAAs) have played a key role in the development and delivery of library services in the United States. While the organization and responsibilities of these agencies vary from state to state, they have two things in common: state-level planning for library services and administration of federal Library Services and Technology Act funds. These agencies bolster learning opportunities in their states, improve library services with cutting edge technologies and resources, and encourage resource sharing among all types of libraries across the state. Results from the most recent State Library Agency Survey (fiscal year [FY] 2009), which was released in March of 2010, paint a stark picture of the budget and staffing realities faced by these agencies. Overall, budgets were reduced by 2.6 percent and staff cut by 6.7 percent from the previous year. This represents a particularly significant and sudden reduction in staff and revenues for many state agencies. This brief is intended to provide policymakers at the local, state, and federal level with a detailed look at the current budget situation and its impact on library services and to share some strategies that individual states are pursuing to adjust to the new fiscal reality. (Contains 4 figures and 9 footnotes.)