Progress made during the second year of the Adult Basic Education Staff Development Project of the Southern Regional Education Board is reported. Growth shown in the six major areas of activity established during the first year was as follows: (1) State Departments of Education In-Service Leadership activities strengthened the roles of the state director and his staff in planning and utilizing staff development resources; (2) The Higher Education Capabilities activity involved at least two institutions in each state to provide pre- and in-service adult and adult basic education training through graduate and undergraduate courses and graduate degree programs; (3) The Local In-Service Capability program facilitated the training of local program personnel and assisted supervisors in establishing appropriate sequences for seminars and workshops to foster professional development among staff members; (4) The Continuing Consultant program enabled college and university instructors to visit and assist local ABE programs, which helped influence curriculum changes; (5) Regional Seminars provided an opportunity for state department of education, higher educational, and local program personnel to meet with their counterparts from other states to discuss training problems and needs; and (6) The Technical Services program provided the region with expertise and specialized materials. The report is comprised of four chapters and six appendixes. (Author/DB)