This report recommends that an annual report be made to the citizens of Florida about the state of literacy in Florida. The concept of literacy is defined in terms of levels of literacy and basic skills required to achieve the different levels. A review of the literature on literacy is the basis for three suggested levels of literacy: (1) pre-literacy, composed of skills which are still unstable and transient and which allow a person to complete the tasks demanded by society in its elementary schools; (2) basic literacy, composed of stable skills measurable at a grade level of approximately 5.5; and (3) career literacy, composed of occupationally specific skills and functional and survival skills and measurable at a grade level of approximately 7.5. Since work is one of the primary functions of being an independent contributing member of society, career literacy is considered necessary for a person to become minimally literate. The basic skills are those language and computational processes essential for literacy and upon which further learning depends. It is recommended that a statewide criterion assessment device be constructed to identify the essential tasks which need to be accomplished in each skill area. (MKM)