Noting that reports by the National Research Council and the National Reading Panel show that children learn to read best if they are first provided with an understanding that sounds heard in spoken words correspond to letters seen in print, this issue of the "State Education Leader" newsletter explains that once this skill is acquired, children should then be taught the letter-sound relationships of traditional phonics while being consistently exposed to literature. The newsletter thus proposes that states now need to develop the capacity to translate this research into sound public policy. It notes that policymakers will need the following three tools: access to information and data on literacy programs across the country; a model policy framework to help policymakers select the best policy options for their particular state environment; and a means of mobilizing key education leaders and policymakers to develop the most workable and realistic policies for each state. The newsletter also lists the five key questions addressed by the Education Commission of the States' Model Literacy Policy Template; unveils a new nationwide literacy database; explains how reading failure is a public health concern; and outlines situations in Idaho, Alabama, and Texas. (PM)