Developed as the result of an analysis of annual reports from state libraries, this report describes library services for the institutionalized supported by Library Services and Construction Act (LSCA), Title I, funds during the fiscal year 1985. Trends identified include the funding of more specific projects, resulting in less population being served by greater funds; the increased visibility of programs dealing with health information; the increased use of compact discs; the use of technology to deliver information; steady use of interlibrary loans; and the funding of literacy programs. Also discussed are long-range planning projects, needs assessments, support for institutional programs by local or regional libraries, and common problems encountered by institutional librarians. In addition, a tabular summary of LSCA-funded projects by state includes, for each project, the participating library and project number, a brief project description, the amount of LSCA funding, the amount of state or local funding, and the total amount of funding. (KM)