THIS STATISTICAL AND NARRATIVE REPORT SUMMARIZES EXPANSION AND IMPROVEMENT EFFORTS TO BRING LEGAL SERVICES TO MORE OF THE APPROXIMATELY 29 MILLION PERSONS ELIGIBLE FOR LEGAL SERVICE CORPORATION AID. SPECIAL EFFORTS HAVE BEEN MADE TO REACH NATIVE AMERICAN AND MIGRANT PERSONS, SPEAKERS OF LANGUAGES OTHER THAN ENGLISH, AND HANDICAPPED PERSONS. MORE THAN 30 LANGUAGES ARE USED ROUTINELY IN CONDUCTING CORPORATION ACTIVITIES. TWO MAJOR IMPROVEMENTS IN 1977 WERE INCREASED EDUCATIONAL EFFORTS AND THE SIGNING OF CONTRACTS WITH SUPPORT CENTERS TO PROVIDE SPECIALIZED LEGAL AID FOR COMPLEX CASES. THE MAJORITY OF CLIENTS ARE POOR INDIVIDUALS CONCERNED ABOUT UNSOUND HOUSING, INSUFFICIENT HEALTH CARE, UNFAIR COMMERCIAL PRACTICES, CHILD SUPPORT, AND OTHER PERSONAL LEGAL MATTERS. DURING 1977 THE OFFICE OF PROGRAM SUPPORT EXPANDED ITS TRAINING FOR BOTH NEW LAWYERS AND PARALEGALS AS WELL AS EXPERIENCED LAWYERS. THE RESEARCH INSTITUTE ON LEGAL ASSISTANCE UNDERTOOK AN EXTENSIVE REVIEW OF ALL AREAS OF SUBSTANTIVE LAW AFFECTING THE POOR, INCLUDING INCOME MAINTENANCE, HEALTH PROBLEMS, WORK AND RETIREMENT POLICIES, ACCESS TO THE COURTS, FAMILY LAW, RURAL ISSUES, PROBLEMS OF THE ELDERLY, AND THE IMPACT OF ELECTRONIC FUNDS TRANSFER SYSTEMS ON THE POOR. EXPENDITURES FOR VARIOUS PROGRAMS ARE PRESENTED BY REGION. IN GENERAL, 94.7 PERCENT OF THE BUDGET PROVIDES LEGAL ASSISTANCE -- 92 PERCENT FOR FIELD PROGRAMS, 2.5 PERCENT FOR DEMONSTRATION PROJECTS AND EVALUATION, AND 0.2 PERCENT FOR PROGRAM DEVELOPMENT AND EXPERIMENTATION -- WHILE 5.3 PERCENT OF THE BUDGET PROVIDES SUPPORTING ACTIVITIES. THE 2.2 PERCENT SPENT FOR PROGRAM SUPPORT PROVIDES LEGAL SERVICE FOR COMPLEX CASES. OVERVIEWS ARE GIVEN OF MANY LOCAL PROGRAMS. PERSONAL PROFILES ARE GIVEN OF SEVERAL ATTORNEYS WORKING IN LOCAL FIELD OFFICES. THE APPENDIXES CONTAIN A BREAKDOWN OF FUNDING LEVELS FOR EACH PROGRAM ARRANGED BY STATE AND CITY AND FUNDING LEVELS FOR THE YEAR FROM SEPTEMBER 1976 TO AUGUST 1977 FOR DELIVERY SYSTEMS STUDY DEMONSTRATION GRANTS. LEGAL SERVICES CORPORATION FINANCIAL STATEMENTS ARE INCLUDED. THE REPORT IS ILLUSTRATED BY PHOTOGRAPHS.