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| This report was produced under U.S. Department of Education Contract  |
| No. ED-04-CO-0025-0001 with the American Institutes for Research.     |
| Diane DeMaio served as the contracting officer's representative.      |
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|                                                                       |
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| U.S. Department of Education                                          |
|                                                                       |
| Margaret Spellings                                                    |
|                                                                       |
| *Secretary*                                                           |
|                                                                       |
| Office of Vocational and Adult Education                              |
|                                                                       |
| Troy Justesen                                                         |
|                                                                       |
| *Assistant Secretary*                                                 |
|                                                                       |
| Division of Adult Education and Literacy                              |
|                                                                       |
| Cheryl Keenan                                                         |
|                                                                       |
| *Director*                                                            |
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| August 2007                                                           |
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|                                                                       |
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| This report is in the public domain. Authorization to reproduce it in |
| whole or in part is granted. Although permission to reprint this      |
| publication is not necessary, the citation should be: U.S. Department |
| of Education, Office of Vocational and Adult Education, *Adult        |
| Education Annual Report to Congress Year 2004--05,* Washington, D.C., |
| 2007.                                                                 |
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|                                                                       |
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| This report is also available on the Department's Web site at:        |
| www.ed.gov/offices/OVAE.                                              |
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|                                                                       |
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| On request, this publication is available in alternate formats, such  |
| as Braille, large print, or computer diskette. For more information,  |
| please contact the Department's Alternate Format Center at            |
| 202-260-0852 or 202-260-0818.                                         |
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Contents

List of Exhibits v

[**Executive Summary** 1](#__RefHeading___Toc173039323)

[**Introduction** 3](#__RefHeading___Toc173039324)

[**Adult Education Enrollment and Participant Status**
4](#__RefHeading___Toc173039325)

[**Accountability System---The National Reporting System**
9](#__RefHeading___Toc173039326)

[**Incentive Awards** 10](#__RefHeading___Toc173039327)

[**Measuring Educational Gain** 11](#__RefHeading___Toc173039328)

[**Measuring Other Outcomes** 12](#__RefHeading___Toc173039329)

[**Federal Investments to Improve Data Quality and Its Use for Program
Improvement** 15](#__RefHeading___Toc173039330)

[**Federal Assistance in PY 2004--05** 15](#__RefHeading___Toc173039331)

[**NRS Implementation by States** 16](#__RefHeading___Toc173039332)

[**Summary of National Performance Results**
19](#__RefHeading___Toc173039334)

[National and State Profiles of Selected Program and Student Information
27](#__RefHeading___Toc173039336)

Appendix A A--1

Exhibits

Exhibit 1. National Performance: Adult Completion of Educational Levels
and Core Outcome Measures PY 2000--01 Through PY 2004--05 2

Exhibit 2. Adult Education Enrollment by Program Area PY 2004--05 4

Exhibit 3. Student Enrollment by Age and Program Area PY 2004--05 5

Exhibit 4. Student Enrollment by Age and Ethnicity PY 2004--05 5

Exhibit 5. Student Enrollment by Participant Status, PY 2004--05 6

Exhibit 6. Five States With the Highest Number and Highest Percentage of
Adult Education Students Aged 16 to 18 PY 2004--05 7

Exhibit 7. Numbers of States Exceeding Performance Standards and Amount
of Award Funds Available, by Program Year 10

Exhibit 8. Student Enrollment by Educational Level PY 2004--05 12

Exhibit 9. Number of States Using Data Collection Methods for Follow-Up\
PY 2004--05 13

Exhibit 10. Adult Education Outcomes from PY 2000--01 to PY 2004--05 19

Exhibit 11. Educational Gain Basic Literacy Skills from PY 2000--01 to
PY 2004--05 20

Exhibit 12. Educational Gain English Language Acquisition from PY
2000--01 to\
PY 2004--05 21

Exhibit 13. High School Completion from PY 2000--01 to PY 2004--05 22

Exhibit 14. Entered Postsecondary Education or Training from PY 2000--01
to\
PY 2004--05 23

Exhibit 15. Entered Employment from PY 2000--01 to PY 2004--05 24

Exhibit 16. Retained Employment from PY 2000--01 to PY 2004--05 25

[]{#__RefHeading___Toc173039323 .anchor}Executive Summary

The state‑administered grant program authorized under the *Adult
Education and Family Literacy Act (AEFLA)*, enacted as Title II of the
*Workforce Investment Act (WIA) of 1998*, is the major source of federal
support for adult basic education and literacy education programs. When
*AEFLA* was authorized in 1998, Congress made accountability for results
a central focus of the new law, setting out new performance
accountability requirements for states and local programs that measure
program effectiveness on the basis of student academic achievement and
employment‑related outcomes. To define and implement the accountability
requirements of *AEFLA*, the U.S. Department of Education's Office of
Vocational and Adult Education (OVAE) established the National Reporting
System (NRS).

To monitor data collection procedures and to promote data quality
improvement, OVAE developed data quality standards to clarify the
policies, processes, and materials the states and local programs should
have in place to collect valid and reliable data. To assist states in
meeting the standards, OVAE has provided resources, training, and
technical assistance activities to improve data quality and has refined
NRS requirements, including producing guidelines for conducting
follow-up surveys. OVAE has also provided individual technical
assistance to states on NRS implementation.

In the program year (PY) 2004--05, the state grant program enrolled
2,581,281 learners, of whom 39 percent were enrolled in Adult Basic
Education (ABE), 16 percent were enrolled in Adult Secondary Education
(ASE), and 44 percent were enrolled in English Literacy (EL) programs.

PY 2004--05 marked the fifth year of the implementation of the NRS
accountability requirements. Exhibit 1 provides a comparison of actual
performance on the core measures for adult education for the past five
years under the NRS. Each of the educational gain measures increased
over the five program years. High school completion showed a steady gain
of 18 percentage points from PY 2000--01 to PY 2004--05. Students
entering postsecondary education increased from 25 to 34 percent over
the period, though the growth was less dramatic than for high school
completion. The two employment measures, entered employment and retained
employment, showed some gain from PY 2000--01 to PY 2004--05, but spiked
in PY 2001--02 and PY 2002--03, respectively.

+------------+-------+-------+-------+-------+-------+---------------+
| Exhibit    |       |       |       |       |       |               |
| 1.\        |       |       |       |       |       |               |
| National   |       |       |       |       |       |               |
| Pe         |       |       |       |       |       |               |
| rformance: |       |       |       |       |       |               |
| Adult      |       |       |       |       |       |               |
| Completion |       |       |       |       |       |               |
| of         |       |       |       |       |       |               |
| E          |       |       |       |       |       |               |
| ducational |       |       |       |       |       |               |
| Levels     |       |       |       |       |       |               |
| and\       |       |       |       |       |       |               |
| Core       |       |       |       |       |       |               |
| Outcome    |       |       |       |       |       |               |
| Measures   |       |       |       |       |       |               |
| P          |       |       |       |       |       |               |
| Y 2000--01 |       |       |       |       |       |               |
| Through    |       |       |       |       |       |               |
| P          |       |       |       |       |       |               |
| Y 2004--05 |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
|            | Perce |       |       |       |       | Number        |
|            | ntage |       |       |       |       | Achieving     |
|            | Achi  |       |       |       |       | Outcome\      |
|            | eving |       |       |       |       | (5-Year       |
|            | Ou    |       |       |       |       | Total)        |
|            | tcome |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
|            | 200   | 200   | 200   | 200   | 200   | (PY 2000--01  |
|            | 0--01 | 1--02 | 2--03 | 3--04 | 4--05 | to\           |
|            |       |       |       |       |       | PY 2004--05)  |
+------------+-------+-------+-------+-------+-------+---------------+
| E          | 36    | 37    | 38    | 38    | 40    | 2,510,582     |
| ducational |       |       |       |       |       |               |
| Gain       |       |       |       |       |       |               |
| ABE/ASE\*  |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| E          | 32    | 34    | 36    | 36    | 37    | 2,006,175     |
| ducational |       |       |       |       |       |               |
| Gain       |       |       |       |       |       |               |
| English    |       |       |       |       |       |               |
| Literacy\* |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| High       | 33    | 42    | 44    | 45    | 51    | 889,531       |
| School     |       |       |       |       |       |               |
| Completion |       |       |       |       |       |               |
| \*\*       |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| Entered    | 25    | 29    | 30    | 30    | 34    | 241,520       |
| Pos        |       |       |       |       |       |               |
| tsecondary |       |       |       |       |       |               |
| Edu        |       |       |       |       |       |               |
| cation\*\* |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| Entered    | 31    | 39    | 37    | 36    | 37    | 668,376       |
| Empl       |       |       |       |       |       |               |
| oyment\*\* |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| Retained   | 62    | 63    | 69    | 63    | 64    | 903,046       |
| Empl       |       |       |       |       |       |               |
| oyment\*\* |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+
| \*         |       |       |       |       |       |               |
| Percentage |       |       |       |       |       |               |
| of adults  |       |       |       |       |       |               |
| enrolled   |       |       |       |       |       |               |
| who        |       |       |       |       |       |               |
| completed  |       |       |       |       |       |               |
| one or     |       |       |       |       |       |               |
| more       |       |       |       |       |       |               |
| e          |       |       |       |       |       |               |
| ducational |       |       |       |       |       |               |
| levels     |       |       |       |       |       |               |
|            |       |       |       |       |       |               |
| \*\*       |       |       |       |       |       |               |
| Percentage |       |       |       |       |       |               |
| of adults  |       |       |       |       |       |               |
| who set    |       |       |       |       |       |               |
| the goal   |       |       |       |       |       |               |
| and        |       |       |       |       |       |               |
| achieved   |       |       |       |       |       |               |
| it         |       |       |       |       |       |               |
|            |       |       |       |       |       |               |
| ABE =      |       |       |       |       |       |               |
| Adult      |       |       |       |       |       |               |
| Basic      |       |       |       |       |       |               |
| Education; |       |       |       |       |       |               |
| ASE =      |       |       |       |       |       |               |
| Adult      |       |       |       |       |       |               |
| Secondary  |       |       |       |       |       |               |
| Education  |       |       |       |       |       |               |
|            |       |       |       |       |       |               |
| Source:    |       |       |       |       |       |               |
| AEFLA      |       |       |       |       |       |               |
| State      |       |       |       |       |       |               |
| Grant      |       |       |       |       |       |               |
| Program    |       |       |       |       |       |               |
+------------+-------+-------+-------+-------+-------+---------------+

[]{#__RefHeading___Toc173039324 .anchor}Introduction

Adult education programs meet a critical need in our nation to improve
the literacy skills of adults and enhance their ability to be more
productive members of society and the workforce. The *AEFLA*, enacted as
Title II of the *WIA of 1998*, is the principal source of federal
support for adult basic skills programs. The purpose of the program, as
defined in *AEFLA*, is to

-   Assist adults to become literate and obtain the knowledge and skills
    necessary for employment and self‑sufficiency,

-   Assist adults who are parents to obtain the educational skills
    necessary to become full partners in the educational development of
    their children, and

-   Assist adults in the completion of a secondary school education.

The purpose of the state‑administered grant program is to provide
educational opportunities for adults aged 16 and older, not currently
enrolled in school, who lack a high school diploma, the basic skills, or
the ability to function effectively in the workplace or in their daily
lives. These state grants are allocated by formula based upon the number
of adults aged 16 and older who are not enrolled or required to be
enrolled in secondary school and who do not have a secondary school
credential. These data are drawn from the U.S. Census on Population and
Housing, as required by *WIA*, Title II. The federal allocation for
*AEFLA* grants to states for PY 2004--05 (or Fiscal Year 2004) was
\$564,079,550. Nationally, this amount represented approximately 26
percent of the total amount expended at the state and local levels to
support adult education and literacy in PY 2004--05. States distribute
82.5 percent of the federal funds competitively to local adult education
providers, using 12 quality criteria identified in the law. The provider
network includes a variety of local agencies---local education agencies,
community colleges, community‑based organizations, and volunteer
literacy organizations. Many adult education programs also work with
welfare agencies at the state and local levels to provide instruction to
adults needing basic skills who are receiving Temporary Assistance for
Needy Families (TANF) benefits. In addition, adult education supports
adults in job training programs through partnerships with One Stop
Career Centers and other job training programs in the community.

Courses of instruction offered by local providers include:

-   Adult Basic Education (ABE), instruction in basic skills designed
    for adults functioning at the lower literacy levels to just below
    the secondary level,

-   Adult Secondary Education (ASE), instruction for adults whose
    literacy skills are at approximately the high school level and who
    are seeking to pass the General Educational Development (GED) tests
    or obtain an adult high school credential, and

-   English Literacy (EL), instruction for adults who lack proficiency
    in English and who seek to improve their literacy and competence in
    English.

[]{#__RefHeading___Toc173039325 .anchor}Adult Education Enrollment and
Participant Status

In PY 2004--05, the program enrolled 2,581,281 learners, 39 percent of
whom were enrolled in ABE, 16 percent were enrolled in ASE, and 44
percent were enrolled in EL programs. (See Exhibit 2.)

  ------------------------------ ----------------- ----------------------
  Exhibit 2.\                                      
  Adult Education Enrollment by                    
  Program Area\                                    
  PY 2004--05                                      

  By Program Area                Enrollment        

                                 Number            Percentage

  Adult Basic Education          1,017,231         39

  Adult Secondary Education      421,301           16

  English Literacy               1,142,749         44

  Total Enrollment               2,581,281         100
  ------------------------------ ----------------- ----------------------

> Source: AEFLA State Grant Program

Adult education serves a varied population. Exhibit 3 shows the number
of learners by program area and age. Overall, 38 percent of students
were under age 25 and more than 80 percent were under 45. Only 4 percent
were age 60 or older. Age distribution, however, varied by program area.
ASE students tended to be younger (67 percent were under 25) than both
ABE and EL students (with 46 percent and 22 percent respectively under
25), and EL students tended to be older (21 percent were over 44) than
both ABE and ASE students (15 percent and 7 percent over 44,
respectively).

Exhibit 4 looks at learners across all program areas by ethnicity and
age. Hispanics represent the largest group enrolled in adult education
(43 percent) in PY 2004--05, followed by whites (27 percent) and African
Americans (20 percent). A plurality of 16- to 18-year-olds (42 percent)
and people aged 60 and older (32 percent) were white, and a plurality of
19‑ to 24‑year‑olds, 25- to 44-year-olds, and 45- to 59-year-olds were
Hispanic.

> ![](media/image2.pct){width="3.0791666666666666in" height="9.15in"}

![](media/image3.pct){width="3.83125in" height="9.159722222222221in"}

Adults enter adult education programs from a variety of circumstances.
In PY 2004--05, 35 percent of the students came to programs unemployed,
and 37 percent were employed. (See Exhibit 5.) Ten percent were on
public assistance, and 10 percent were in correctional facilities.

  -------------------------------------- --------------------------------
  Exhibit 5.\                            
  Student Enrollment by Participant      
  Status,\                               
  PY 2004--05                            

  Status                                 Number

  Total enrollment                       2,581,281

  Employed                               965,018

  Unemployed                             915,593

  On public assistance                   270,287

  In correctional facilities             253,221

  In other institutional settings        33,561
  -------------------------------------- --------------------------------

> Source: AEFLA State Grant Program

The participation of 16- to 18-year-olds in adult education is of
particular interest to policymakers because earning a high school
diploma through the regular elementary and secondary education system is
the traditional path for these youths. In PY 2004--05, 13 percent of
participants were between the ages of 16 and 18 (see Exhibit 3), with
the percentage fluctuating between 13 and 15 percent over the previous
five program years. (See Appendix A.) Forty-eight percent of these
participants were in ABE, compared to 42 percent in ASE and 10 percent
in EL. Therefore, a plurality of 16- to 18-year-olds entered into adult
education programs at a level that suggests they lacked the literacy
skills one would expect of a high school student.

The extent to which 16- to 18-year-olds participated in adult education
varied widely among states. Exhibit 6 shows the four states, plus Puerto
Rico, with the highest numbers of young adults aged 16 to 18 years old
and the five grantees with the highest percentages of young adults.
Although some states with the largest populations, such as Florida and
California, have the highest number of young adults, some states with
smaller populations, such as Vermont and Wyoming, have a higher
percentage of young adults among those served.

+-----------+----------------------+-----------+-----------------------+
| Exhibit   |                      |           |                       |
| 6.\       |                      |           |                       |
| Five      |                      |           |                       |
| States\*  |                      |           |                       |
| With the  |                      |           |                       |
| Highest   |                      |           |                       |
| Number    |                      |           |                       |
| and       |                      |           |                       |
| Highest   |                      |           |                       |
| P         |                      |           |                       |
| ercentage |                      |           |                       |
| of Adult  |                      |           |                       |
| Education |                      |           |                       |
| Students  |                      |           |                       |
| Aged 16   |                      |           |                       |
| to 18\    |                      |           |                       |
| PY        |                      |           |                       |
| 2004--05  |                      |           |                       |
+-----------+----------------------+-----------+-----------------------+
| State     | Number 16--18 year   | State     | Percentage 16--18     |
|           | olds                 |           | year olds             |
+-----------+----------------------+-----------+-----------------------+
| Florida   | 82,451               | Puerto    | 46                    |
|           |                      | Rico      |                       |
+-----------+----------------------+-----------+-----------------------+
| C         | 50,976               | Vermont   | 30                    |
| alifornia |                      |           |                       |
+-----------+----------------------+-----------+-----------------------+
| North     | 19,245               | Wyoming   | 28                    |
| Carolina  |                      |           |                       |
+-----------+----------------------+-----------+-----------------------+
| Georgia   | 18,115               | Indiana   | 27                    |
+-----------+----------------------+-----------+-----------------------+
| Puerto    | 15,229               | Maine     | 26                    |
| Rico      |                      |           |                       |
+-----------+----------------------+-----------+-----------------------+
| \* In the |                      |           |                       |
| funding   |                      |           |                       |
| formula   |                      |           |                       |
| under     |                      |           |                       |
| Title II, |                      |           |                       |
| Puerto    |                      |           |                       |
| Rico      |                      |           |                       |
| receives  |                      |           |                       |
| a state   |                      |           |                       |
| formula   |                      |           |                       |
| grant.    |                      |           |                       |
|           |                      |           |                       |
| Source:   |                      |           |                       |
| AEFLA     |                      |           |                       |
| State     |                      |           |                       |
| Grant     |                      |           |                       |
| Program   |                      |           |                       |
+-----------+----------------------+-----------+-----------------------+

[]{#__RefHeading___Toc173039326 .anchor}Accountability System---The
National Reporting System

Since PY 2000--01, the National Reporting System (NRS) has been the
accountability system for the adult education program. Each state has
established a performance accountability system that meets NRS
requirements, and NRS data are the basis for assessing the effectiveness
of states in achieving continuous improvement of adult education and
literacy activities to optimize the return on investment of federal
funds P.L. 105‑220 § 212(a). The NRS includes the following three core
indicators, identified in *AEFLA*, that are used to assess state
performance:

-   Demonstrated improvements in the literacy skill levels in reading,
    writing, and speaking English; numeracy; problem‑solving; English
    language acquisition; and other literacy skills,

-   Placement in, retention in, or completion of postsecondary
    education; training; unsubsidized employment; or career advancement,

-   Receipt of a secondary school diploma or a recognized equivalent
    (P.L. 105‑220, § 212(b)(2)), and.

These indicators are embodied in the five outcome measures of the NRS:

-   **Educational Gain---**The percentage of adult learners in basic and
    English literacy programs who acquire the basic or English language
    skills needed (validated through standardized assessment) to
    complete the educational functioning level in which they were
    initially enrolled.

To measure educational gain, the NRS established a hierarchy of six
educational functioning levels, from beginning literacy through high
school level completion, and six levels for English literacy, from
beginning literacy level to high advanced level. The levels are defined
through reading, writing, numeracy, and functional and workplace skills
(and, for English literacy, speaking and listening skills) at each
level. Included for each level is a corresponding set of benchmarks on
commonly used standardized assessments, such as the Test of Adult Basic
Education (TABE) and the Comprehensive Adult Student Assessment System
(CASAS), as examples of how students functioning at each level would
perform on these tests.

-   **High School Completion---**The percentage of adult learners with a
    high school completion goal who earned a high school diploma or
    recognized equivalent.

-   **Entered Postsecondary Education---**The percentage of adult
    learners who establish a goal to continue their education at the
    postsecondary level and who entered postsecondary education or
    training after program exit.

-   **Entered Employment---**The percentage of unemployed adult learners
    (in the workforce) with an employment goal who obtained a job within
    one quarter after program exit.

-   **Retained Employment---**The percentage of adult learners with a
    job retention goal who (1) entered employment within one quarter
    after exiting and (2) were still employed in the third quarter after
    program exit.

States also may identify additional performance indicators for adult
education and literacy activities and incorporate these indicators, as
well as corresponding annual levels of performance, in their state
plans.

[]{#__RefHeading___Toc173039327 .anchor}Incentive Awards

States that achieve superior performance across Title I and Title II
*(AEFLA)* of the *Workforce Investment Act (WIA)* and the *Carl D.
Perkins Career and Technical Education Act* are eligible for state
incentive awards. [^1] The numbers of states receiving those awards and
the amounts distributed over the past five years are presented in
Exhibit 7. The number of states that exceeded their adult education
performance levels (Title II) appears followed by the number that also
exceeded Title I and Perkins performance levels. States receive
incentive awards only if they exceed annual performance levels, as
negotiated between the state and OVAE and the Department of Labor for
the three programs. The determination of whether a state has exceeded
its adjusted levels of performance is based on the state's cumulative
achievement across all measures. This is done by calculating the
percentage of the state‑adjusted level achieved for each measure, and
then averaging the percentage achieved across all measures. When the
cumulative average exceeds 100 percent, the state is deemed to have
exceeded the overall adjusted performance levels. In PY 2004--05, 23
states received incentive awards.

  -------------- ------------------- ----------------- -------------------
  Exhibit 7.\                                          
  Numbers of                                           
  States                                               
  Exceeding                                            
  Performance                                          
  Standards and                                        
  Amount of                                            
  Award Funds                                          
  Available, by                                        
  Program Year                                         

  Program Year   Exceeded Title II   Exceeded Titles   Amount of Award
                                     I, II, and        Funds Available
                                     Perkins           

  2004--05       37                  23                \$16.6 million

  2003--04       43                  19                \$16.6 million

  2002--03       47                  23                \$25.4 million

  2001--02       46                  16                \$28.8 million

  2000--01       46                  12                \$27.6 million

  **Total**                                            **\$115 million**
  -------------- ------------------- ----------------- -------------------

> Source: AEFLA State Grant Program

The funding available for incentive awards has decreased significantly
over that same time, from \$27.6 million in PY 2000--01 to \$16.6
million in PY 2003--04 and PY 2004--05. *WIA* Section 503 indicates that
state incentive awards are to be issued in an amount not less than
\$750,000 and not more than \$3,000,000 to the extent that funds are
available; otherwise, prorated amounts are to be awarded. The total
amount available for incentive awards for PY 2004--05 was
\$16.6 million. Title II funds set aside for the incentive grants
totaled \$10,152,007. Perkins funds set aside totaled \$6,453,041, and
*WIA* (Title I) had no funds set aside for incentive grants..

[]{#__RefHeading___Toc173039328 .anchor}Measuring Educational Gain

Under the NRS, each state must establish standardized assessment
procedures that local programs must use---first at enrollment to
identify an adult learner's educational functioning level, and then
after a period of instruction to measure educational gain (level
advancement). States are free to use the assessments that best address
the needs of their students and delivery system, but they must use
standardized assessments. Consequently, each state assesses students
somewhat differently, using different assessments and post-tests of
students at different times. The most frequently used assessments are
the TABE, CASAS, and the Basic English Skills Test (BEST or BEST Plus),
the last used exclusively with EL learners.

There are 12 educational levels: six in ABE and ASE and six in EL.
Exhibit 8 presents\
PY 2004--05 adult education enrollment figures by level as determined by
a standardized pretest administered to each student upon program
entrance. The majority of students were enrolled in the combined
programs of ABE and ASE. Within ABE and ASE, the largest percentage of
students was enrolled in ABE High Intermediate (27 percent), and the
smallest was enrolled in ABE Beginning Literacy (9 percent). The
plurality of students (48 percent) were enrolled in the combined ABE
intermediate levels. In EL, the largest percentage of students was
enrolled in EL Beginning level (28 percent), and the smallest in EL High
Advanced level (3 percent). The plurality of EL students (49 percent)
were enrolled in the combined beginning levels.

  -------------- -------- ----------- ----------- ----------------------------------------------------
  Exhibit 8.\                                     
  Student                                         
  Enrollment by                                   
  Educational                                     
  Level\                                          
  PY 2004--05                                     

  Educational    Number               \%          ![](media/image4.wmf){width="3.0833333333333335in"
  Level                                           height="2.3041666666666667in"}

  ABE/ASE                                         

  Beginning               129,559     9           
  Literacy                                        

  Beginning               196,245     14          

  Low                     296,216     21          
  Intermediate                                    

  High                    395,211     27          
  Intermediate                                    

  Low Secondary           236,235     16          

  High Secondary          185,066     13          

  Total ABE/ASE           1,438,532   100         

                                                  

  EL                                              ![](media/image5.wmf){width="3.292361111111111in"
                                                  height="2.2069444444444444in"}

  Beginning               237,650     21          
  Literacy                                        

  Beginning               323,840     28          

  Low                     244,570     21          
  Intermediate                                    

  High                    158,560     14          
  Intermediate                                    

  Low Advanced            139,470     12          

  High Advanced           38,659      3           

  Total EL                1,142,749   100         

  Total All               2,581,281               
  -------------- -------- ----------- ----------- ----------------------------------------------------

ABE= Adult Basic Education; ASE= Adult Secondary Education; EL= English
Literacy

Source: AEFLA State Grant Program

[]{#__RefHeading___Toc173039329 .anchor}Measuring Other Outcomes

Setting and measuring goals for the four outcome measures (excluding
educational gain) allows adult education students to specify what they
want to accomplish and provides a benchmark for both individual and
program performance. The NRS does not require students to set any of
these goals, but once set, programs are held accountable for determining
whether students who chose these goals attained them during the program
year. States may collect these measures through the use of matching
administrative records or through a follow-up survey. The use of
administrative records is clearly preferred because of its greater
accuracy and lower cost and its use is possible in most states for the
high school completion measure.

Exhibit 9 identifies the methods through which states currently collect
data for the four measures that require programs to follow up after a
student leaves the program. In PY 2004--05, 35 states used
administrative records to determine student outcomes for high school
completion, and four additional states supplemented administrative
records with surveys. For the employment measures, consulting state
unemployment insurance (UI) wage records is the most efficient,
accurate, and cost‑effective approach to determining the postprogram
employment outcomes. However, not all states have the capability to use
the UI system, due to data privacy issues or technical problems in some
states. Twenty-seven states used this method solely (compared to
28 states in PY 2003--04), and an additional six states used this method
in combination with surveys. For entrance to postsecondary education,
there are few comprehensive databases are available to states for
measuring postsecondary enrollment. Consequently, most states must use
individual student surveys to collect this follow-up measure.

  ------------------- ---------------- ----------- ----------- ----------------------------------------------------
  Exhibit 9.\                                                  
  Number of States                                             
  Using Data                                                   
  Collection Methods                                           
  for Follow-Up\                                               
  PY 2004--05                                                  

                      Data Collection                          
                      Method                                   

  Measure             Administrative   Survey      Both        
                      Records/\                                
                      Data Matching                            

  Obtained High       35               14          4           ![](media/image6.wmf){width="0.9388888888888889in"
  School Diploma or                                            height="0.925in"}
  Passed GED                                                   

  Entered             18               27          8           ![](media/image7.wmf){width="0.8819444444444444in"
  Postsecondary                                                height="0.8861111111111111in"}
  Education                                                    

  Entered Employment  27               19          6           ![](media/image8.wmf){width="0.9118055555555555in"
                                                               height="0.8944444444444445in"}

  Retained Employment 27               21          5           ![](media/image9.wmf){width="0.96875in"
                                                               height="0.9590277777777778in"}

  = Matching = Survey                                          
  = Both                                                       
  ------------------- ---------------- ----------- ----------- ----------------------------------------------------

Source: AEFLA State Grant Program

[]{#__RefHeading___Toc173039330 .anchor}Federal Investments to Improve
Data Quality and Its Use for Program Improvement

OVAE has provided states with training and technical assistance to
improve the quality and use of NRS data. This assistance has included
multiday training sessions and the development of guidebooks that
illustrate implementation of NRS requirements and conduct of follow-up
surveys, and which address other data quality and program improvement
issues. Since 2001, OVAE has also made training resources available
online for adult educators. To monitor improvements in data quality,
OVAE has continued to use state NRS data quality standards, which
identify the policies, processes, and materials that states and local
programs should have in place to collect valid and reliable data. The
standards define quality data policies and procedures and also provide
guidance to states on how to improve their systems.

[]{#__RefHeading___Toc173039331 .anchor}Federal Assistance in
PY 2004--05

In the first few years of NRS, OVAE's assistance to states focused on
the implementation of NRS requirements, development of data systems, and
the improvement of data quality. In\
PY 2004--05, OVAE built on earlier activities and assisted states and
local programs in using the data for their own reporting, program
management, and program improvement. In the summer of 2005, OVAE held a
training entitled *Demonstrating Results: State and Local Report Cards
for Adult Education*. Topics covered during these three-day meetings
included "The Why, What, and Who of Developing Report Cards" and
"Selecting Evaluative Criteria or a Rubric." These sessions provided a
hands‑on opportunity for states to develop report cards at the state or
local level with a focus on evaluating performance. States have used the
report cards in a number of ways. New York, for example, integrated its
report card with its software and reported, "Report cards have been a
great tool.... \[They\] raised the awareness at the program level of
what the state is looking at.... Now \[the card\] tops \[our\] priority
list."

In addition to in‑person workshops and hands‑on experiences, the NRS
maintains two Web sites to provide continuous and ongoing training and
other resources for the field.

-   *NRSWeb* (www.nrsweb.org) provides an overview of the NRS; training
    materials; guidelines for data quality, use, collection, and
    reporting; and other publications and links.

-   *NRSOnline* (www.nrsonline.org) offers interactive trainings, a
    learner self‑assessment, and information about the implementation of
    the NRS to adult education teachers, administrators, and others
    interested in adult education.

As part of its effort to provide states with timely and user‑friendly
guidance on NRS policy, the NRS revised and updated the *Implementation
Guidelines.* The NRS also developed an online assessment database and
reviewed assessment policies from 28 states to better understand current
assessments and their use in adult education. Direct technical
assistance has been provided to dozens of states on meeting NRS
requirements, improving data quality, and using data. This assistance
includes a presentation to the local directors in one state on NRS
reporting requirements and using data for program improvement.

[]{#__RefHeading___Toc173039332 .anchor}NRS Implementation by States

As data systems have become more sophisticated over the five years of
the NRS, many states can now rely on real‑time data to set performance
standards, monitor local performance, and implement performance‑based
funding. Stable data are being used more meaningfully by administrators,
teachers, and support staff to make decisions that help them design more
effective programs to meet students' needs. States also use this
information to set better standards and goals. For example, one state
has set a standard that 70 percent of unemployed students must have a
goal of employment.

Training conducted during the second phase of the NRS has prepared local
staff in many states to access and use their data on a regular basis.
Staff can now use data as part of their research to identify effective
practices for classroom instruction, professional development, and
goal‑setting and to determine which support mechanisms will help
learners persist long enough to reach their education, training, and
employment goals. As staff members become more directly involved in
using data, they begin to trust the data and participate more
effectively in the program improvement process. Some states, such as
Tennessee, reported that teachers are using the data for their classes
and posting graphs of these data outside their classrooms for their
students and other teachers to see.

States also are beginning to be able to address larger programmatic
questions using their data. For example, some states are beginning to
examine which type of enrollment (managed or open) is better for the
students. In addition, states are developing ways to account for program
efficiencies and outcome per cost units.

[]{#__RefHeading___Toc173039334 .anchor}Summary of National Performance
Results

PY 2004--05 marked the fifth year of implementation of the NRS
accountability requirements. Exhibit 10 provides a comparison of actual
performance on each of the outcome measures for adult education for the
past five years under the NRS. The educational gain measures show a
steady gradual increase over the five program years. High school
completion shows a steady gain of 18 percentage points from PY 2000--01
to PY 2004--05. Entered postsecondary increased steadily over the period
though less dramatically than high school completion. Entered employment
and retained employment showed some gain from PY 2000--01 to
PY 2004--05, but spiked in PY 2001--02 and PY 2002--03, respectively.

  -----------------------------------------------------------------------
  Exhibit 10.\
  Adult Education Outcomes from PY 2000--01 to PY 2004--05

  ![](media/image11.wmf){width="6.7868055555555555in"
  height="4.540277777777778in"}
  -----------------------------------------------------------------------

\* Percentage of adults enrolled who completed one or more educational
levels\
\*\* Percentage of adults enrolled who achieved this outcome

Source: *AEFLA* State Grant Program

Exhibits 11 through 16 show the performance for each of the outcome
measures in more detail. Exhibit 11 shows the percentage and number of
enrolled adults who acquired the basic literacy skills needed to
complete at least one educational level. The percentage of students
advancing showed a steady increase of 4 percentage points over the
five‑year period. The number of students advancing one or more
educational functional levels increased in the first three years, but
dropped in PY 2003--04. A total of 2,510,582 adults advanced over the
five years.

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 11.\                                                                                         
  Educational Gain Basic Literacy Skills from PY                                                       
  2000--01 to PY 2004--05                                                                              

  ![](media/image12.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Completing One or More                                                            
  Educational Functioning Levels                                                                       

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  465,909                                              517,914     525,652     499,341     501,766     2,510,582
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

Exhibit 12 shows the percentage and number of enrolled adults acquiring
the basic English Literacy skills needed to complete at least one
educational functioning level. The percentage of students showed a
steady increase of 5 percentage points over the five years. As with ABE
and ASE, the number of students advancing a level showed steady gain in
the first three years, but flattened in the last two years. The total
number of students advancing a level over the five years was 2,006,175.

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 12.\                                                                                         
  Educational Gain English Language Acquisition from                                                   
  PY 2000--01 to PY 2004--05                                                                           

  ![](media/image13.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Completing One or More                                                            
  Educational Functioning Levels                                                                       

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  349,476                                              402,922     417,298     418,732     417,747     2,006,175
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

Earning a high school diploma or a GED is one of the four
outcome‑related goals that students can set. Exhibit 13 shows the
percentage and number of enrolled adults who set the goal of completing
high school or earning a GED and accomplished that goal. Although the
number of students achieving this goal decreased over the five years,
the percentage of students achieving this goal out of those setting it
increased 18 percentage points from PY 2000--01 to PY 2004--05. The
total number achieving this goal over the five years was 889,531.

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 13.\                                                                                         
  High School Completion from PY 2000--01 to PY                                                        
  2004--05                                                                                             

  ![](media/image14.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Who Earned a High School Diploma                                                  
  or GED                                                                                               

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  200,708                                              182,854     164,028     162,954     178,987     889,531
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

As the bar chart in Exhibit 14 indicates, the percentage of students who
set the goal of entering postsecondary education or training and
achieved the goal increased 9 percentage points over the five years. The
number of students stayed relatively stable, totaling 241,520 over the
same period.

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 14.\                                                                                         
  Entered Postsecondary Education or Training from PY                                                  
  2000--01 to PY 2004--05                                                                              

  ![](media/image15.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Who Enrolled in Postsecondary                                                     
  Education or Training                                                                                

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  50,917                                               48,867      46,061      45,264      50,411      241,520
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

Both the percentage and number of enrolled adults who set an employment
goal and achieved it fluctuated over the five‑year period. Because
setting and achieving the goal is partially dependent on fluctuations in
the general employment rate, the fluctuation in students achieving this
outcome is not surprising. From PY 2000--01 to PY 2004--05, the
percentage of students achieving the goal went from 31 percent to 37
percent, with a spike in PY 2001--02 of 39 percent. The five‑year total
of students achieving the goal was 668,376---also with a spike in the
individual PY total for 2001--02. (See Exhibit 15.)

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 15.\                                                                                         
  Entered Employment from PY 2000--01 to PY 2004--05                                                   

  ![](media/image16.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Who Were Employed One Quarter                                                     
  After Exit                                                                                           

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  128,860                                              160,158     132,844     115,766     130,748     668,376
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

Exhibit 16 shows that although the number of students achieving the goal
of retaining employment decreased from PY 2000--01 to PY 2004--05, the
percentage achieving the goal was 2 percentage points higher in
PY 2004--05 than it was in PY 2000--01, with a spike in PY 2002--03. A
total of 903,046 students achieved the goal over the five years.

  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  Exhibit 16.\                                                                                         
  Retained Employment from PY 2000--01 to PY 2004--05                                                  

  ![](media/image17.wmf){width="6.340972222222222in"                                                   
  height="4.345138888888889in"}                                                                        

  Number of Students Who Retained Employment Three                                                     
  Quarters After Exit                                                                                  

  2000--01                                             2001--02    2002--03    2003--04    2004--05    5-Year
                                                                                                       Total

  224,547                                              180,019     183,344     156,163     158,973     903,046
  ---------------------------------------------------- ----------- ----------- ----------- ----------- -----------

Source: *AEFLA* State Grant Program

[]{#__RefHeading___Toc173039336 .anchor}National and State Profiles of
Selected Program and Student Information

The following pages present selected program and student information at
the national level and for each of the 50 states, the District of
Columbia, and Puerto Rico. The first page of each profile provides
student demographic and enrollment data, funding data, and retention and
completion data. The second page details performance for educational
gain and each of the four outcome measures from PY 2000--01 to PY
2004--05.

# Appendix A

  ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  **[Enrollment of Young                                                                                                                                                  
  Adults Ages 16--18 in                                                                                                                                                   
  Adult Education by                                                                                                                                                      
  State]{.smallcaps}**                                                                                                                                                    
  ------------------------ -------------- ---------------- -------------- ---------------- -------------- ---------------- -------------- ---------------- -------------- ----------------
  **[PY 2000-01 through PY                                                                                                                                                
  2004-05]{.smallcaps}**                                                                                                                                                  

  ** **                    **Program                       **Program                       **Program                       **Program                       **Program      
                           Year**                          Year**                          Year**                          Year**                          Year**         

                           **2000--01**                    **2001--02**                    **2002--03**                    **2003--04**                    **2004--05**   

  **State or Outlying      **\# 16--18    **% of Total     **\# 16--18    **% of Total     **\# 16--18    **% of Total     **\# 16--18    **% of Total     **\# 16--18    **% of Total
  Area**                   Year Olds      Participants**   Year Olds      Participants**   Year Olds      Participants**   Year Olds      Participants**   Year Olds      Participants**
                           Enrolled**                      Enrolled**                      Enrolled**                      Enrolled**                      Enrolled**     

  Alabama                  6,557          28               5,629          29               6,545          30               6,643          31               4,915          25

  Alaska                   803            15               810            15               735            16               606            17               660            17

  Arizona                  2,607          8                4,337          13               3,033          9                2,374          9                2,180          8

  Arkansas                 6,110          16               6,669          17               6,644          17               5,408          15               5,759          16

  California               42,977         9                49,554         9                49,960         9                50,771         9                50,976         9

  Colorado                 2,483          18               2,410          16               2,373          16               2,138          14               1,677          11

  Connecticut              5,979          19               5,759          18               6,165          19               6,411          19               6,430          20

  Delaware                 869            20               1,096          20               898            15               988            16               1,034          16

  District of Columbia     213            6                322            9                195            6                209            7                297            8

  Florida                  82,439         20               104,850        26               95,291         25               100,220        27               82,451         24

  Georgia                  23,149         21               18,855         17               19,421         17               18,476         16               18,115         19

  Hawaii                   1,883          18               2,400          22               2,679          25               1,658          18               1,449          19

  Idaho                    1,849          18               1,561          16               1,618          18               1,268          17               1,360          18

  Illinois                 7,735          6                7,060          6                7,164          5                8,920          7                8,869          7

  Indiana                  13,969         33               13,916         31               12,662         31               12,308         30               11,694         27

  Iowa                     2,756          14               3,277          17               2,984          18               2,101          17               2,045          17

  Kansas                   2,698          24               2,568          24               2,357          23               2,104          21               1,924          20

  Kentucky                 5,276          17               5,702          17               5,656          16               3,507          11               3,340          11

  Louisiana                11,631         38               9,621          30               9,372          29               8,156          25               7,481          25

  Maine                    3,423          28               3,068          28               2,525          24               2,196          25               2,148          26

  Maryland                 3,264          14               3,973          13               3,764          13               3,745          12               4,025          15

  Massachusetts            1,638          7                1,709          7                1,337          6                1,425          7                1,144          5

  Michigan                 2,008          4                3,838          5                3,644          5                2,387          5                1,269          4

  Minnesota                3,273          8                2,808          7                2,476          6                2,426          5                2,025          4

  Mississippi              8,265          22               7,267          21               6,776          19               5,150          19               5,107          20

  Missouri                 5,352          13               6,561          16               7,065          17               4,156          11               4,529          12

  Montana                  1,276          26               992            22               977            22               850            22               739            22

  Nebraska                 1,656          21               1,974          21               1,986          19               1,773          17               1,614          16

  Nevada                   3,675          16               461            6                449            6                437            5                497            5

  New Hampshire            1,084          18               990            15               909            14               821            14               799            14

  New Jersey               3,833          9                2,814          7                2,831          7                2,814          7                2,708          7

  New Mexico               2,894          12               3,652          17               3,820          18               3,691          16               3,790          16

  New York                 12,513         7                11,850         7                5,915          4                7,429          4                6,472          4

  North Carolina           21,159         20               21,768         19               19,741         18               19,418         18               19,245         18

  North Dakota             309            15               503            23               487            23               457            21               476            23

  Ohio                     8,147          12               6,984          11               5,764          10               4,787          8                4,661          9

  Oklahoma                 3,815          19               3,833          18               3,710          17               2,873          14               3,041          15

  Oregon                   3,995          16               4,074          15               3,334          13               2,800          13               2,945          14

  Pennsylvania             6,144          12               6,021          12               2,757          5                6,508          12               6,426          12

  Puerto Rico              10,272         25               9,979          18               13,414         27               15,634         34               15,229         46

  Rhode Island             682            12               631            12               531            12               577            11               759            11

  South Carolina           14,143         15               12,710         14               7,789          11               7,284          11               7,039          11

  South Dakota             1,442          26               611            22               614            18               582            16               520            15

  Tennessee                5,594          14               6,381          14               6,620          14               8,829          18               9,535          19

  Texas                    13,673         12               14,073         12               14,436         11               13,845         11               13,410         11

  Utah                     4,326          14               3,710          12               3,258          10               3,143          10               3,068          10

  Vermont                  59             5                206            18               427            22               716            31               604            30

  Virginia                 2,894          8                2,907          9                2,642          8                2,351          8                2,560          9

  Washington               3,393          6                3,683          6                3,385          6                1,990          5                2,592          5

  West Virginia            1,315          10               1,651          16               1,923          18               1,754          17               1,804          19

  Wisconsin                4,494          16               4,723          15               3,970          13               3,864          13               3,300          13

  Wyoming                  722            26               692            31               737            28               695            29               671            28

  **United States\***      **383,668**    **14**           **403,493**    **15**           **375,765**    **14**           **371,673**    **14**           **348,088**    **13**
  ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

\* Totals here differ from tables in the body of the report because
these figures do not include territories. Table data refer to the 50
states, the District of Columbia, and Puerto Rico.

[^1]: The newly authorized *Carl D. Perkins Career and Technical
    Education Improvement Act* eliminated incentive grants.