Assessment of the present status of vocational education in Texas and recommended priorities for the future constitute this annual report. Part 1 documents the progress of the 1970s and lists 15 challenges for vocational education in the 1980s, including application of meaningful evaluation procedures and careful program planning to maximize cost effectiveness. Strengthening the role of vocational education in energy conservation and development and providing education and training opportunities for the incarcerated are the two areas recommended for specific improvement of vocational and adult education. Part 2, Advisory Council Evaluation and Responsibilities under Public Law 94-482, presents the 13 State Advisory Council responsibilities listed in the Education Amendments of 1976 and details the progress made toward the achievement of each. Part 3 summarizes characteristics and concerns of secondary and postsecondary vocational programs in the state gathered from (1) a mail survey (88% response) and (2) 10 "teachers speak" hearings conducted during inservice workshops of vocational teachers and counselors. Baseline data concerning program enrollments, funding, and skill and subject area provisions are presented for assessing change over a 10-year period (1968-1978). Linkages with other human resource agencies and innovative practices in serving special populations are among some of the other program characteristics reported. Tne final section provides a summary of council meetings and activities. (MEK)