Composed of forms outlining specific activities funded by the Library Services and Construction Act (LSCA), this annual report for FY 1989 opens with summaries and fiscal breakdowns programs funded by LSCA Titles I, II, and III. The remainder of the document contains project reports and system evaluation reports for: (1) Title I--Areas Without Services, Areas With Inadequate Services, Services to Disadvantaged, Services to Physically Handicapped, Services to Institutionalized, Major Urban Resource Libraries, Services to Limited English Speakers, Services to the Elderly, Literacy Programs, and Administrative Expenses for LSCA; (2) Title II--Public Library Construction; and (3) Title 3--Planning for Cooperative Library Networks, and Establishing, Expanding, and Operating Library Networks. Specific activities described include demonstrations of interlibrary cooperation, the Interlibrary Loan and Reference Referral Network, the Texas Union List of Serials, the Texas Reading Club, Regional Library Systems, and Continuing Education. (SD)