This notebook discusses issues and methods of developing adult literacy education (ALE) programs according to functional context education (FCE) principles. Chapters 1-3 in Part 1, The Power of ALE, focus on current ALE; address why ALE is of growing importance; show how investments can return benefits for adults and others; look at issues involved in trying to find out how many adults are at risk because of their literacy skills; review the National Adult Literacy Survey; discuss problems in determining how much is enough literacy; describe diversity among adult literacy students and adult education settings and how it can affect program development; summarize data on learning gains in ALE programs; and show that the results suggest a need for more attention to development of ALE programs based on results of cognitive science and principles of FCE. Chapters 4-6 in Part 2, Cognitive Science Foundations, provide a summary of contemporary cognitive science as it relates to FCE and show how concepts of FCE relate to other advances in educational research; and discuss concepts such as the social basis of cognition and literacy, constructivism, situated cognition and practice, contextual learning, anchored instruction, problem-based learning, cooperative learning, multiliteracies, and multiple modes of representation in relation to FCE. Chapters 7-10 in Part 3, Case Studies in FCE, provide four case studies of ALE programs that illustrate how to apply the principles of FCE to curriculum development and assessment. (YLB)