This document describes a research study of the status of basic adult literacy services in New England, particularly the inadequate link between adult basic education (ABE) and work- force preparation programs. The report describes a system that has failed to adapt to the region's increased need for articulation among English as a Second Language Programs (ESOL), adult education and secondary education. Following an executive summary and a section describing the need for ABE services, there are sections on four major areas considered to be significant if New England is to transform adult basic education from an inadequately funded, stand-alone cottage industry into a institutionalized, professional delivery system characterized by effective partnerships. These are the major areas: (1) funding and capacity; (2) mission and performance measures; (3) pathways to advancement; and (4) special populations. The report concludes with 14 recommendations for change, including the following: develop a clear mission for ABE that includes a public role in economic development and poverty reduction; create pathways to educational and economic advancement; create sustainable adult education systems for prison inmates; provide adequate funding; and publish state report cards. There are nine tables. Notes, list of interviewees and the research methodology are appended. The bibliography lists 22 references. (AJ)