Covering 1979-80, which was the final year of the initial four year grant period for the Partnership for Rural Improvement (PRI), this report details the major assessments and program adjustments made during that year. Several program developments of critical importance to understanding the transition occurring in PRI are highlighted in the section "Major Program Developments." The section entitled "Evaluation Studies" describes the focal points of 1979-80 evaluation efforts. Summary observations and recommendations made by the review team are included. "Illustrative Project Activity" describes a number of the more than 80 projects in which PRI is currently involved. Projects described in this section have been chosen to illustrate key dimensions of transition issues; inferences can be drawn from these projects with broad application to the underlying PRI concepts. A section on "Plans for 1980-81" indicates an expanded use of task forces, development of community service fellowships and internships, establishment of a community education demonstration site, and expansion to Walla Walla Community College District. The financial management and budget of PRI are described in the final section. Attention is drawn to the fact that an additional grant has been awarded by the W. K. Kellogg Foundation for continuing and expanding the work initiated in the 1976-1980 period. (CM)