The Director's section of this 1972-73 report details the tribal take-over of Johnson-O'Malley (JOM) funds and the state's Indian education program. The narrative portion describes JOM and supportive programs for American Indians in Minnesota. JOM supported projects cover 3 principle areas: (1) basic, e.g., transportation; (2) parental cost expenditures; and (3) special services, such as guidance counseling. Supportive programs encompass 4 areas: (1) regional Indian material collection; (2) Public Law (PL) 81-874, Federally Impacted Areas; (3) PL 89-10, Elementary and Secondary Education Act of 1966; and (4) Chapter 966, Minnesota Aid to Indian Education Act. The report contains the state law on scholarships for eligible Indian students, amendments to section 4 of this law and other available scholarships, members of the Indian scholarship committee, a brief summary of all students given scholarship assistance, and information about graduates and other students assisted in higher education and vocational schools. The report also presents the narrative report of the statewide Opportunities for Minnesota Indians--Adult Basic Education Program, as administered by the State Department of Education. Statistical tables covering such areas as the rate of school taxes and age-grade Indian enrollment (dropouts) amount to approximately 1/2 of this report. The Minnesota Education Committee and budgeted and non-budgeted school districts are also listed. (FF)