This report reviews legislative and administrative policies surrounding adult basic education, the Job Opportunities and Basic Skills program (JOBS) of the Family Support Act, and the Job Training and Partnership Act (JTPA). Recommendations are made for the development of an effective continuum of literacy services. Section A is a historical summary of federal literacy policy that culminated in the Adult Education Act (AEA). Section B reviews the major pieces of federal legislation--AEA, JTPA, JOBS, and others--that could have a significant impact on adult literacy services. Section C presents results of telephone surveys with directors in Massachusetts, New York, and Kentucky to determine the status of collaboration and coordinated service delivery. These state summaries describe the purpose of state coordination, the agencies and programs involved, specific collaborative activities, and challenges to coordination. Section D presents results of interviews with local administrators in the same three states who were asked whether the state efforts to coordinate programs enabled them to provide better services to clients and what issues surrounding coordination they felt needed to be addressed. The final section examines seven areas of difference among AEA, JOBS, and JTPA programs in relation to recommendations that are offered to foster coordination: purpose/foci, funding, client eligibility, services provided, administrative structures, delivery systems, and data collection. Contains 16 references. (YLB)