Organizations and groups responsible for the bulk of the nation's adult basic skills provision are currently reaching an estimated 9-10 percent of the needy population. This represents an increase from the 7-8 percent reached in 1984. Adult Basic Education (ABE), the largest single program in the nation, has shown an overall growth in enrollment of 25 percent in just 2 years (1984-1986). The greatest growth has been in service to English as a second language students; four states--California, Florida, Texas, and New York--account for 50 percent of the total ABE enrollment. More than one-third of enrollees drop out of ABE before finishing their program. The two major voluntary organizations, Literacy Volunteers of America (LVA) and Laubach Literacy Action (LLA) have experienced dramatic growth in their service since 1984. Both have faced a heavy new demand for technical assistance and have received more, but still inadequate, funding. The other provider groups are collectively serving an increased number of persons, particularly library-based programs and community-based organizations. Various officials of these groups indicate that the television awareness campaigns and other national activities have greatly heightened interest in the special needs of their constituencies. Primary problems facing the field are a mood of pessimism, inadequate funding, inadequate planning to meet long-term needs, and slow federal and state policy development. (YLB)