State governors have an immense stake in building a workforce training and education system capable of producing the skilled workers needed to secure the country's economic future. In doing so, states must face the following challenges: (1) many state workforce systems do not reflect market needs; (2) public education is falling short in preparing individuals for the new economy; (3) workers must navigate a more uncertain career path; (4) many low-wage workers need supports to advance; and (5) effective governance and accountability structures are missing. Governors can implement the following policy changes to overcome these barriers: (1) connect workforce development to economic needs through education; (2) build a stronger education pipeline to produce trainable graduates possessing strong foundation skills; (3) expand/create incentives for continuous learning; (4) enhance workers' ability to manage their careers; (5) strengthen work supports (including education and training) to promote employment retention and career advancement; and (6) strengthen governance and accountability in the workforce system. Specific actions to strengthen the education pipeline include ensuring that all levels of education from prekindergarten through postsecondary education are connected and that they build students' skills, working with the higher education system to contain costs, and modifying financial aid policies to promote greater participation and choice. (Contains 26 endnotes.) (MN)