Introductory material to this annual report provides listings of the South Carolina State Library Board members and professional staff, an organization chart, and an outline of the responsibilities of each level of the library organization; and a description of the state library that includes a historical synopsis, highlights of 1985-86, and discussions of the library board, state library awards, and volunteers. Next, a summary of Division of Library Development activities includes Administrative Services; Field Services (supervision of state aid to public libraries, continuing education for librarians, library services for the disadvantaged, literacy program, audiovisual services, library service to children, institutional library services, and public library construction); and Library Services to the Blind and Physically Handicapped. A discussion of Division of Library Services activities includes Reader Services (reference and information services to state government, legislative reference service, interlibrary loan service, and government documents); technical services; and the South Carolina Library Network. In addition, a listing of South Carolina State Library publications and statistical data for state library collections, interlibrary loans, state and federal fund expenditure, and public libraries are included. Directories of South Carolina public, college, university, and institutional libraries and a listing of public library board chairmen are also provided. (KM)