In 1989, a survey was conducted to assess the status of computer use and education in two-year colleges in Alabama. Three copies of the survey instrument were sent to the academic deans of all 41 institutions in the state's two-year college system. The deans were asked to complete one questionnaire and ask two randomly selected teachers to complete the others. Responses were received from 30 teachers, 16 department heads, and 24 administrators. Study findings included the following: (1) Alabama ranked below the national average in the number of computers used; (2) most computers were purchased with grant funds; (3) though 50% of the schools used Apple or IBM-PC microcomputers, the remaining schools used a hodgepodge of machines, limiting compatibility and software sharing; (4) Apple users had an average of 47 programs for their machines as opposed to 40 for the IBM-PC users; (5) responding junior colleges tended to place their microcomputers in a centralized laboratory, while the technical colleges tended to place their computers in occupational facilities; (6) of those using the computer in instruction, 70% used word processors, spread sheets, and database managers; 50% taught programming skills; and 25% used them in areas other than business; and (7) teachers were generally not involved in developing computer programs and not consulted about purchases. The report also presents findings from other relevant research and offers recommendations for improving the use of computers in Alabama's two-year colleges. (VVC)