This analysis of postsecondary student preparedness and remedial education needs attending Florida community colleges focuses on two cohorts: 125,000 first-time-enrolled community college students enrolled in a community college over a three-semester period during 1993-94 and a cohort of over 18,000 public high school graduates (1994) enrolled in a Florida community college during the 1994-95 academic year. The report analyzes the causes, effects, and costs of providing remediation services to students who are not qualified, based on standardized test scores, to enroll in college-level course work. Findings indicated that 69 percent of the first cohort and 62 percent of the second cohort of students required at least one remedial course in math, reading, or writing; that students who took required remedial courses had substantially higher grade point averages than similar students who did not complete remedial course work; that completion of Algebra I, Geometry, and Algebra II in high school significantly reduced the need for math remedial education at the postsecondary level; and that the state's investment in postsecondary remedial education in 1993-94 exceeded $51 million dollars. Recommendations include raising academic and accountability standards and creating incentives and disincentives for schools and students. Eight appendices providing information on academic standards at the high school and postsecondary levels are included. (Contains 14 references.) (CK)