A literature review examined the extent to which public funds for adult basic education and the guidelines under which funding is granted are meeting the needs of the target population as delineated by law. Research was limited to adult basic education programs funded by Federal and state monies and operated through the public school systems of Ohio. The literature review indicated that the Adult Education Act was enacted to eradicate poverty by providing the undereducated, underemployed, and poor adult with the basic reading and writing skills needed to retain or obtain employment. The literature revealed that the Federal Government authorizes and establishes funding levels and regulations and the 50 states serve as a bridge between the Federal level and their respective education agencies. The literature further indicated that, at best, the legislation is minimally serving the stated goals. Those benefitting the most were the secondary level students who are achieving General Educational Development certificates and gaining skills necessary to upgrade, retain, or obtain employment. Findings led to such recommendations as a philosophical and financial commitment beyond current legislation, institution of specialized programs for the target population, design of evaluations to measure stated outcomes, and support of the thrust to eradicate illiteracy. (YLB)