This progress report informs the Legislature of actions taken by the Department of Environmental Protection (DEP) in response to a 1996 OPPAGA report. It presents an assessment of the extent to which the department has addressed the findings and recommendations included in the report. Recycling continues to be established in the state. Statewide, more than 34% of municipal solid waste is being recycled. However, the 50% recycled goal for the minimum five materials has not yet been achieved. Starting in Fiscal Year 1997-98 Recycling and Education Grants were reduced 55%. The Legislature should discontinue the Recycling and Education Grant Program through a multiyear phase-out. Discontinuation of the grant program would provide the state annual savings of $10.3 million.