A plan for the further development of library services for the state of Indiana during the next five years is detailed in accordance with the U.S. Office of Education requirements under the Library Services and Construction Act. Findings contained in the Indiana Library Studies were used as background material for the plan's formulation. Three major development areas are called for: 1) strengthening the state library, 2) designation of resource centers within the state, and 3) establishment of no more than 14 and no fewer than eight Area Library Services Authorities (ALSA) whose membership will include all types of libraries. This document describes the environment in which the five-year program operates, reviews the assessments of Indiana's library needs and identifies goals and objectives to be attained in meeting those needs. This plan proposes criteria for evaluating program effectiveness and sets criteria, priorities, and procedures for program administration. (Author/SL)