The 1978-79 profile of the State University and Community College System of Tennessee shows its fall enrollment to be 88,799 (headcount) or 65,683 full-time equivalent students, with 11,358 students graduated. Full-time faculty numbered 2,684. The state appropriation was $137.5 million, with an operating budget of $230.1 million. During the year the headcount enrollment increased by 3.2 percent. Significant progress is seen in the formulation of the five-year comprehensive system plan, and the final report on low-producing programs was adopted. The first class was admitted to the East Tennessee State University College of Medicine during this year. Special funds were appropriated for faculty salary improvement and desegregation efforts, and a study of faculty salaries was conducted that found no evidence of discrimination on the basis of sex. In addition, the plan for merging Tennessee State University and the University of Tennessee at Nashville was implemented. In this annual report general information on the state system is given, and the chancellor's report addresses academic affairs, personnel matters, student affairs, desegregation efforts, fiscal and administrative affairs, and facility development. Appendices consist of tables on enrollment, student characteristics (academic level, age, residence), degrees awarded, faculty, library holdings, student aid awards, revenues and expenditures, and construction. (MSE)