This report provides information on programs and developments during the 1980-81 academic year in the Institute of Study for Older Adults (ISOA) Liberal Arts program which provided more than 158 courses to over 3,600 disadvantaged elderly residents of New York City. The first section concentrates on progress towards continuing objectives--in particular towards involving students in the selection of courses of study and promoting advocacy of the learning needs of elders to educators and gerontologists. This section reveals that older students prefer academic over non-academic classes and prefer classes they select themselves over those chosen by center staff. After a discussion of the program's recognition, both locally and nationally, the success of projects undertaken in local centers and of radio shows for the elderly are assessed. The next section evaluates the liberal arts program of ISOA and includes details of a survey of 180 adults. The survey found that ISOA students were not more satisfied with life, socially active, or involved in the community than other groups and that students reported positive changes resulting from their experience with the program. Then, efforts to extend basic education and English as a Second Language to the elderly, involving surveys, interviews, and the development of a program manual, are outlined. Finally, the effects of funding reductions on ISOA liberal arts programs are examined. Appendices include data on funding, enrollment, attendance, and completion patterns. (HB)