Introduced with an overview of planned library service, the four parts of this annual report cover the Maryland State Library Network, public library services, school media services, and statistical data. The first part summarizes the activities of the state library resource center and the regional library resource centers, and provides statistical data on regional libraries' interlibrary loan performance and a comparison of the state regional library resource center for 1977 and 1978. Part two describes the community services, information and referral services, and services to institutions of the state's public libraries; the activities of the Maryland State Library for the Blind and the Physically Handicapped are noted, and a table of public library building data is supplied. Part three covers the program development, resources, and training activities of the state's school media centers and describes the State Media Services Center; financing information is provided and statistics are compared for 1977 and 1978. The appendices contain 13 tables of statistics on public library operating income and expenditures (per local system), LSCA projects, school media centers, materials collections, staffing in school media centers, and book costs. Membership lists of various library-related committees conclude the report. (JD)