This overview of developments in programs and projects funded under the Library Services and Construction Act (LSCA) in FY 1979 also provides information on the administrative expenses and procedures of the Library Development Division of the Texas State Library in allocating these funds. Brief summaries reporting progress in each area are followed by evaluation reports including a program description and yearly statistics for individual Title I (library development) and Title 3 (interlibrary cooperation) projects. The 13 projects reported for Title 1 are concerned with regional public library systems, an interlibrary loan and reference referral network, library services for the blind and other handicapped persons, centralized acquisitions for state institutions, the Texas Summer Reading Club, the Statewide Video Project, a major resource center bibliographic network, statewide public information, continuing education and consulting, urban library aid, and the Pre-White House Conference. The five projects evaluated for Title 3 include library networks, a cooperative union list of serials, and a shared circulation system. Narrative statements evaluating the final results of 1978 LSCA projects complete the report. (SW)