Covering the 1976 fiscal year and the one-time transition quarter of July 1, 1976 through September 30, 1976, this annual report on the Appalachian Regional Commission (ARC) presents narrative and tabular data re: (1) A Year of Strengthening the Partnership (highlights on the Federal, state, and local partnership which constitutes ARC); (2) Growth (transportation, housing and community development, and enterprise development); (3) Human Services (health, education, and child development); (4) The Land (energy, environment, and natural resources); (5) Development at the Local Level; (6) Finances; (7) Appendices (project totals approved; population, labor force, unemployment, and income statistics; and local development district list and map). Among the 1976 highlights reported here are: the strengthening of the development and planning process via more tightly controlled state planning, increased local participation, and preparation for development of a regional plan; extension of the nonhighway programs through fiscal year 1979 and the highway programs through fiscal year 1981; development of areawide action programs among 50% of the local development districts; preparation of "Questions for Appalachia", a preliminary document re the regional plan that identifies conditions and issues; a resolution coming out of the energy symposium to accelerate roadway construction essential to energy resource transportation. (JC)