This report provides an overview of the major program activities for fiscal year 1978 and 1979 of the National Center for Education Statistics (NCES). It is intended to give readers a clear idea of the structure and functions of NCES and does not present any actual statistical data. The first section summarizes the center's purpose and objectives. The next sections describe the core of statistical data from institutions and students that provide cross-sectional and trend information needed to address policy issues and to report on the status of American education. The final section describes the Center's statistical services. These services include assistance to states to improve their data systems, analysis to transform data into information for policy use, and dissemination to make timely information available to many groups of users. The appendix lists estimated costs for fiscal years 1978 and 1979. (Author/MLF)