South Carolina's Education Improvement Act (EIA) of 1984 was a comprehensive piece of reform legislation providing for 60 new educational policies and programs. These new activities were funded by a one-cent increase in the state sales tax. The Act requires annual reports that present information concerning the benefits of EIA, provide additional means for assessing student performance as a prelude to reallocating resources, and clarify the technical assistance needed by school districts. This document, the first of the required annual reports, presents an analysis of information in six areas: student achievement, services to special students, services to school personnel, school conditions, community involvement, and public confidence. In order to provide intermediate information on progress as well as in-depth data on programs, both short- and long-term indicators of change are examined. The report's data are frequently presented in tabular or graphic form. The report also contains recommendations concerning the state's incentive programs for teachers, principals, schools, and districts. Appendixes discuss the design of the evaluation of the Remedial and Compensatory Program; list the programs offered in the Administrators' Leadership Academy; and describe public opinion surveys conducted in 1983 and 1985. (PGD)