Libraries have not been able to keep up with inflationary and other price increases for library materials. As a result their purchasing power has declined. Because the rates of price increase vary by subject and type of publication, acquisitions budgets are being distorted. Strategies for containing the worst of these side-effects are discussed. The most important of these is the establishment of a meaningful dialogue with administrators and faculty to determine priorities and directions to go. Cancellations of serials are not the only answer, though a necessary first step is the re-evaluation of all subscriptions. The longer-term implications of new technologies are examined and a new approach to budgeting is recommended.