This report to the Governor and state assembly members reports two major achievements during the year: the opening of a new library facility for the blind and physically handicapped, and the continued growth of the computerized networking system linking the public libraries of the state. Introductory materials include lists of the members of the South Carolina State Library Board and of the library staff; an organizational chart; a history of the South Carolina State Library; and highlights of fiscal year 1986-1987. A summary of the activities of the Division of Library Development then describes Administrative Services; Field Services (state aid for public libraries, federal aid to South Carolina libraries, continuing education for librarians, library services for the disadvantaged, literacy programs, 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, the South Carolina Library Network, and government documents); and Technical Services. Reports on state library awards and volunteer services are also provided, as well as a listing of South Carolina State Library publications and statistical data on state library collections, interlibrary loans, expenditures of state and federal funds, and public, college, and institutional libraries. Directories of public, college, and institutional libraries are also provided. (CGD)