Although Michigan has one of the best trained work forces in the nation, the skill gap between what the marketplace needs and what its workers can offer is continuing to widen. Michigan must develop an adult training and education system that is customer driven and customer sensitive, emphasizes shared responsibility of stakeholders, empowers individuals to invest in themselves, is user-friendly, and is accountable. The following actions are thus needed: (1) adopt a new work-readiness goal and work force literacy definition to drive all adult training and education programs; (2) establish a professionally staffed public/private policy board to oversee the new training system; (3) simplify access to all adult training and educational services; (4) develop a standard skills assessment tool to use with program participants; (5) foster joint investments and encourage individuals and the public and private sectors to form training partnerships; (6) create a human resources research and development institute to evaluate labor force needs and schools' responses to them; (7) provide formal training and technical assistance to training providers; and (8) initiate a public information/marketing campaign to promote the new system. The four chapters of this report address, respectively, the skill gap, the skills challenge, the skill-building system, and the skill-building strategy. Appendices provide interview findings, summary of state training and educational programs, examples of joint investments, and a bibliography. (MN)