This report describes the methods and presents the results of a study undertaken to analyze the distribution of benefits from state, federal, and local funding within the Texas Library System during the 1980 fiscal year. The background of the study is described and a list of definitions for terms and acronyms used in the report is provided. The methodology for analyzing funding sources is reviewed and the major sources of funding for Texas libraries--System Operation Grants, Interlibrary Loan Network contracts, and Major Resource Center (MRC) contributions--are described. The patterns found in the allocation of benefits among library systems throughout the state of Texas are discussed and some of the possible interpretations of the study's findings are summarized. Data are presented in five tables. Specific details for benefit allocation within each of the 10 major regions of Texas are given in the first appendix to the report, and a second appendix contains graphs plotting library benefits against the size of the regional populations served during the fiscal year 1980. (JL)