A financial survey views the net effect of California's Proposition 13 as effectively lowering financial support of libraries 25 percent. After three years, this reduction in income has resulted in a 22 percent drop in the number of library outlets, a 23 percent reduction in operating hours, and an 18 percent loss in library staffing. Funds for library materials are back to within one percent of 1978 levels, not accounting for inflation; however, the loss of up to 17 percent in purchasing power is resulting in missing titles as these go out of print. To balance this view, volunteer usage is up 282 percent and circulation and reference declines are no more than 12 percent and 8 percent respectively. Although California libraries are still an important community and cultural presence, their continued excellence is in jeopardy given financial constraints. (RAA)