The first year report of the Health Education and Welfare (HEW) Region 2 Adult and Continuing Education Staff Development Project administered by Montclair State College reflects the objectives and activities of New Jersey, New York, Puerto Rico, and the Virgin Islands as they sought to improve their staff development capability in 1972-73. The report is organized as follows: (1) a regional summary, (2) four State interim reports, (3) the Management Systems Manual, and (4) project survey recommendations. The regional summary provides an overview of the training aspects of the project. A table provides the number of preservice and inservice activities conducted, individuals trained, training hours, and cost per training hour. The four State interim reports present the status and accomplishments in terms of their individual applications of the nine specific project objectives. The Management Systems Manual provides a "management by objectives" design, including documents dealing with performance and process objectives, systems for critical work activities, a monitoring system, and job description. The project survey recommended that each State conduct a learner and educational needs assessment, establish goals, and implement an evaluation model of the 1973-74 project year. (MW)