This annual report provides a national perspective on Title II-D for federal fiscal year (FY) 2008 (2008-09 school year), as well as emergent trends based on data from the past seven years. Title II-D is the only federal education program with funds explicitly targeted to support state and local effective uses of educational technology in the classroom, schools, and districts. It serves as a complement to investments through other federal programs, including eRate, Title I, and IDEA. The legislation identifies the program purposes as: (1) improve academic achievement through technology; (2) assist every student in crossing the digital divide; and (3) integrate technology into teacher training and curriculum development resulting in research-based instruction. Districts have the option to transfer limited funds between programs and have reported, on average over the last seven years, a positive net effect for Title II-D programs. Data presented here are based on surveys completed in fall 2009 by state technology directors from the 50 states, and reports from the U.S. Department of Education (ED) website. This report is organized into three major sections. Section I provides summaries of the top five national trends identified in Round 7 (FY08) drawn from the state-submitted survey data. Sections II and III focus respectively on the dual funding mechanisms of Title II-D: the competitive grant program and the formula grant program. Overall, the data collected for this report indicate a strong Title II-D track record of state use of emergent technologies to improve academic achievement, increase students' technology literacy, and establish effective instructional methods that leverage digital innovations. While the severe funding cuts to the program beginning in FY06 have limited the range and depth of impact, the state education agency (SEA) policies and leadership continue to advance the Title II-D legislative intents. (Contains 13 tables, 6 figures, a Glossary of Priorities, and 5 footnotes.)