The yearly report focuses on major achievements in Maryland special education in 1978 and on projected 1979 efforts. Initial sections center around a progress report of FY 1978 objectives and a review of fiscal resources for that year. Considered in a section on major achievements of 1978 are developments in nonpublic tuition assistance, hearing officers' training manual, the special education bylaw, early childhood services, child find, personnel development, day care facilities and the monitoring and evaluation system. Special efforts for FY 1979 are explained to involve early childhood services, service to children aged birth to 2 years, related services, vocational education and vocational rehabilitation, Section 504 of The Rehabilitation Act of 1973, child advocacy, nonpublic tuition assistance, and a comprehensive system of personnel development. (CL)