This annual performance report on Arizona adult education begins with 3 pages of financial reports and statistical information presented in 9 tables and 19 charts. Tables and charts depict the following: participants by class type, age group, ethnic background, student progress, reason for separation before completion, and status; sites with numbers of participants and daytime and evening classes; and personnel providing service. The narrative section summarizes these results: 60,000 plus adults were served; services were student centered with flexible class time, time for individual attention, culturally sensitive instructors and support personnel, and easy access to resources; for special populations, services attempted to provide a well-coordinated system to track students' progress and to assist individuals as they move from one set of services to another; expansion of services to welfare and public housed adults was significant; sizable increases in student enrollments continued; work site programs were offered to improve functional literacy and computing skill of employees; and the effort to serve non-English-speaking state residents continued to grow. Exhibits, amounting to over one-half of the report, include the following: program directors' list; materials on homeless persons, including conference on education for homeless program, homeless adult education project organizational chart, and homeless providers list; program quality indicators; technical review form; and agendas for meetings/institutes; and news releases. (YLB)