Provisions and purposes of four federal human resource development programs were reviewed, and options regarding the definition of basic skills and literacy were analyzed. The four programs were as follows: Job Opportunities and Basic Skills (JOBS) program, Job Training Partnership Act (JTPA), Adult Education Act (AEA), and the Carl D. Perkins Vocational Education Act. Three fundamental questions were addressed: What skills should be included? What constitutes adequacy or deficiency in these skills? and How should these skills be measured? The concept of functional literacy had been redefined as the ability to apply skills to several major areas important to adult success. There currently appeared to be no systematic research to support any particular reference points for what constitutes deficiency or literacy or basic skills. Congress' use of a common level--at least to identify priority groups for services--would demonstrate federal policy consistency, permit a similar data point to be used in collecting participant information, and promote local service coordination. Because testing served a variety of purposes, the issue of measurement emerged as not what type of test should be used, but rather what tests were best for serving the various purposes. (An executive summary compiles recommendations. Appendixes include a glossary, description of legislative and regulatory provisions on basic skills and literacy in the four programs, program comparison chart, and 11 references.) (YLB)