LSC HAS REQUESTED CONGRESSIONAL APPROPRIATION OF $304 MILLION IN ORDER TO COMPLETE ITS 3-YEAR MINIMUM ACCESS PLAN. DURING ITS FIRST YEAR OF OPERATION, LSC MADE GAINS IN IMPROVING FUNDING FOR EXISTING PROGRAMS WHICH PROVIDE LEGAL SERVICES TO THE POOR AND IN STRENGTHENING THE MOST SERIOUSLY UNDERFUNDED PROGRAMS. DURING FISCAL 1978, FURTHER GAINS ARE BEING MADE TO MEET THE LSC OBJECTIVE OF PROVIDING RESOURCES TO SUPPORT AT LEAST 2 LAWYERS PER 10,000 LOW-INCOME INDIVIDUALS. BY THE END OF 1978, 20 MILLION SUCH PERSONS IN EVERY STATE WILL HAVE A LEGAL ASSISTANCE PROGRAM IN THEIR AREA, AND LEGAL SERVICES WILL HAVE BEEN EXPANDED TO MANY AREAS WHICH HAVE BEEN WITHOUT LEGAL AID. OF THE TOTAL BUDGET REQUEST, MORE THAN 90 PERCENT ($275.2 MILLION) WILL GO TO LEGAL SERVICES DELIVERY PROGRAMS AND SERVICES EXPANSION EFFORTS. THE REMAINDER WILL BE USED TO HELP COVER TELEPHONE AND TRAVEL EXPENSES ($8.25 MILLION), TO INCREASE LOCAL SERVICES BY 5.5 PERCENT ($9.97 MILLION), TO ADJUST FOR REGIONAL SERVICE COST DIFFERENTIALS ($7 MILLION), TO IMPROVE COLLABORATION AND COORDINATION IN TRAINING AND SERVICE DELIVERY AT THE LOCAL LEVEL ($2 MILLION), AND TO IMPROVE ESSENTIAL RESEARCH AND TRAINING EFFORTS AND TECHNICAL ASSISTANCE AND SUPPORT ACTIVITIES (13.9 MILLION). GREAT EMPHASIS WILL BE PLACED ON THE MANPOWER TRAINING AND RESOURCE RECRUITMENT AND ALLOCATION COMPONENT OF THE PROGRAM. RECRUITMENT EFFORTS HAVE INCLUDED DISTRIBUTION OF A BIMONTHLY LEGAL SERVICES JOB BULLETIN AND SUMMER INTERNSHIP PROGRAMS FOR LAW STUDENTS. INSERVICE TRAINING, SEMINARS, AND TRAINING PROGRAM DEVEOLOPMENT TO MEET SPECIAL NEEDS ARE ALSO SUPPORTED BY THE LSC. TO AID IN EFFECTIVE UTILIZATION OF FINANCIAL RESOURCES, AN AUDIT GUIDE AND MODEL ACCOUNTING SYSTEM FOR PROGRAMS HAVE BEEN DEVELOPED; THE LSC AUDITS REPORTS FROM LOCAL PROGRAMS AND AIDS THEM IN ESTABLISHING AND MAINTAINING COST CONTROL SYSTEMS. IN ADDITION, CENTRAL MANAGEMENT AND ADMINISTRATION COSTS ARE BEING KEPT LOW; ONLY 3 PERCENT OF THE 1979 BUDGET REQUEST IS ALLOCATED TO SUCH COSTS. (JAP)