In fiscal 1978 the State of Washington contracted for $827,505 in Johnson O'Malley (JOM) funds to provide for the education of 5,179 Indian students. The statewide objectives of the JOM program were to increase Indian students' proficiency in reading and mathematics skills, improve Indian students' rate of high school graduation, and improve Indian involvement in education. The annual report includes a historical summary of JOM; an overview of 1978 JOM operations in Washington; financial data (Indian education administrative costs, local school district budget priorities by program areas from 1974 to 1978, JOM funds distribution by school district and region, 1978 revenues of JOM-funded school districts); and statistical data for Indian students (enrollment summaries, statistical and testing data, mathematics and reading achievement grades, and dropout statistics). Descriptions of individual school district programs include student statistics, objectives, and evaluations. Also noted are the Elementary and Secondary Education Act Title I, the Urban, Rural, Racial Disadvantaged, and the Title IV Part A programs and the unmet Indian education needs. A JOM Directory for the state is included. (SB)