The Illinois Community College Board (ICCB) continues its commitment to expand Adult Education and Family Literacy programs necessary for individuals and families to have a high quality work and life in Illinois. This report provides a summary of ICCB programs and activities in adult education and family literacy during the fiscal year July 1, 2003 through June 30, 2004. It notes statistics showing that there is a critical need for adult education in Illinois. Funds by source in FY 2004 and state reimbursement rates for adult education are presented. Future initiatives in adult education are listed, such as the implementation of new adult education funding methodology; expansion of fiscal resources to meet adult education needs; the development of a web-based data collection system to strengthen the quality, accuracy, and reliability of data; and examining the use of evidence-based practices in the classroom as a method for improving instruction and outcomes for students.