An overview is provided of the organization, history, governance, finances, programs, and enrollment of the merged area schools in Iowa, a statewide system of 15 public two-year postsecondary educational institutions. The first section describes the state's two-year college system and its legislatively mandated mission. The next section reviews the 70-year history of the area schools, focusing on legislative influences, enrollment trends, fiscal considerations, changes in mission, and cooperative and economic development activities. After examining the governance structure of the system and outlining the role and responsibilities of the local boards of directors and the State Board of Education, the report offers information on the four major sources of revenue for the system: tuition and fees, local taxes, state general aid, and reimbursement programs. In addition, expenditures by function and category are reviewed for fiscal year 1987, and the new foundation formula for funding area colleges is explained. The next section looks at the comprehensive curricula offered by the colleges in the areas of adult basic education and high school completion courses, continuing and general education courses, supplementary vocational courses, college-parallel arts and sciences courses, preparatory vocational programs, special needs programs, customized training programs, programs for secondary school students, avocational and recreational courses, and programs for institutionalized individuals. This section also reviews the degrees and awards offered by the colleges. The final section offers a breakdown of enrollments in area colleges, reported as headcounts and full-time equivalents. (EJV)