This report of the findings of a year-long policy analysis of New York City's three public branch library systems, carried out by the Nova Institute in cooperation with a study committee composed of city and library officials, opens with a brief historic account of the development of the New York Public Library, the Brooklyn Public Library, and the Queens Borough Public Library systems, followed by a comparative analysis of these libraries with established library standards. The principal purpose of the study was to examine a number of key issues affecting the library systems and their relations with city government. The study included surveys of branch libraries, community boards, and elected officials to obtain a broad range of facts and opinions about library strengths and shortcomings. On the key issues of trade-offs, restructuring, funding and budgeting, and performance, the report recommends: (1) a community-based planning process that could achieve improved services through branch consolidation rather than mandated closing of branches; (2) a new integrated policy planning function for the three systems; (3) some selected experiments in suburban-level funding and action to improve state aid prospects; and (4) an improved approach to budgeting and performance management. The report concludes with a statement supporting the significance of the library system for the City's future economy. (DMC)