This report, which is intended for individuals developing family literacy (FL) programs, contains background information on the research, development, operation, evaluation, and outcomes of federal- and state-level FL initiatives. Discussed in section 1 are the following topics: the importance/benefits of FL programs; definitions of literacy and FL according to Colorado, U.S., and Canadian legislation and various literacy organizations and programs; the history of FL (initial projects/models, federal and state initiatives, and the role of foundations and literacy organizations); the FL research base; the impact of FL programs on children, crime/violence, and poverty; successful practices; examples of family-centered programs; issues and challenges facing FL; and recommendations and challenges for FL. Section 2, which focuses on FL in Colorado, contains the following: a brief history of FL in Colorado; Colorado student success stories; overviews of surveys conducted in F92, FY93, and FY94; profiles of nine Colorado FL programs; and annotated lists of Colorado organizations/programs providing technical assistance, services for family learning, funding resources, and informational resources. The bibliography lists 61 references. Appended are Colorado's definition of FL and listings of FL programs in Colorado in FY94 and family center and Adult Education Act contacts. (MN)