In the third year of its finish-up program, the Appalachian Regional Commission (ARC) used its area development appropriation of $44 million to target three broad areas: (1) creating and retaining jobs in the region; (2) providing basic public facilities in the worst-off Appalachian counties; and (3) improving health care throughout the region. The ARC's highway appropriation of $100 million was used toward improving sections of the Appalachian highway system that have the most traffic and are most critical to economic development. The remaining $5 million of the total appropriation of $149 million was used to offer technical assistance regarding economic development and to support the region's 69 local development districts. Technical assistance activities included funding for diverse dropout reduction programs and a dropout prevention workshop that examined the long-range effects of educational failure on the region's economy. Sections of this report cover financial support and distribution of funding by project type and by state. State and regional maps, county population change data, and a directory of local development districts are included. (JHZ)