The Colorado Adult Literacy Commission assessed the status of illiteracy in Colorado and the degree to which current programs met students' needs. Participants at regional meetings identified these issues: (1) low basic skills hamper economic development; (2) low literacy levels represent a threat to health and safety; (3) illiteracy and crime are connected; (4) illiteracy is intergenerational; (5) major barriers keep Coloradans from improving literacy skills; and (6) insufficient funds restrict literacy programs. The commission established an eighth-grade reading and mathematics level as minimally acceptable. The costs of low literacy levels were identified as decreased productivity and competitiveness; increased cost of doing business; dwindling prospects; and links with crime, homelessness, and poverty. Situational barriers confronted illiterate adults; lack of funds was the major obstacle for programs. Literacy training was provided through the Adult Education Office of the Colorado Department of Education, the Governor's Job Training Office, the Colorado Community College and Occupational Education System, Department of Corrections, probation services, social services, and local providers. Issues that became apparent from a review of other states' practices were these: (1) building the capacity of providers to respond to changing needs; (2) developing goals of instruction that meet identified needs; and (3) workplace literacy. (An executive summary lists the commission's vision, goals, and recommendations.) (YLB)