That's happening in San Diego, too (library hours being cut, staff being retired). It really sucks as many people really enjoy libraries. I did hours upon hours of volunteer work for my local library branch.
You can check out movies there, too. It's way free as compared to NetFlix or Block Buster. I think they even have video games.
Anyway, one proposal is for our City to run a for-profit coffee shop operation in public libraries that will supply each branch with more funds. I think that's a great idea, as it will make libraries even more comfortable than Borders' Book Stores and it will really become the "in-thing" for people to hang out at our public libraries. It was always intended to be that way, anyway.