A survey was sent out in the fall of 1988 to all 4-year college and university libraries in Texas; the overall response rate was 77%. The purpose of the survey was to: (1) compare funding patterns in state and private institutions; (2) compare appropriation increases with rising costs for books and journals; and (3) determine whether academic libraries in Texas have the funds necessary to meet the needs of their faculty and students. Survey results document that most of the libraries at both public and private institutions of higher education are in distress. Support for the acquisition of books and journals has not been sufficient to adequately keep pace with the costs of the increasingly expensive information resources and expanding enrollments. The vast majority of academic libraries are either in the process of or have recently completed extensive serials cancellation projects; at one state institution, alone, over 11,000 journals were cut over a two-year period. Results also indicate that since fiscal year 1986, funding has not kept pace with inflation, and that the funding situation appears to be worsening. Over half of the report is composed of appendices that present the data in 26 tables and 10 graphs. (SD)