This publication contains a report on the status of the K-12 economic education program in Texas and recommendations for further improvement, modification, or additional legislation. The report was submitted by the Central Education Agency to the State Legislature, as it is required to do by law. The first part of the report describes actions taken. Seven economic education centers are in operation in Texas colleges and universities. In addition, three endowed chairs for free enterprise have been created to promote economic education. Over the last two years, these organizations have provided public schools with support for economic education including curriculum planning, teacher inservice, instructional materials development, and consultation. Guidelines for the implementation of economics/free enterprise education were provided in various publications that were mailed to all school districts. Instruction on the essentials and benefits of the free enterprise system were incorporated within the required courses of American history, world history, world geography, and American government. Although the State Legislature did not appropriate funds for the specific purpose of implementing economic education, the Agency utilized several sources of funds for such purposes. The Agency staff conducted inservice and preservice seminars and workshops for approximately 2,000 elementary and secondary educators. In April, 1979, the Texas Education Agency conducted a statewide assessment of students in free enterprise/economics/consumer education. Various recommendations were made to the Legislature. Included among these were that the Legislature direct the State Board of Education to designate the most essential parts of each of the subjects, including economics, in the well-balanced curriculum and that the State Board of Education modify graduation requirements by adding economics (including free enterprise) as a half-unit requirement. (Author/RM)