Economic and demographic changes are dramatically increasing the need for adult education, basic literacy, and English-as-a-Second Language (ESL) programs. Millions of Illinois residents lack the level of literacy skills needed to obtain good jobs, perform well on the job, and function well in an increasingly complex society. Addressing the scope and diversity of need for adult education and literacy skills takes community colleges, public schools, community based organizations, and others working together to provide the education and services needed by a wide variety of adult learners. The Illinois Community College Board (ICCB) is committed to strengthening these partnerships and working to expand Adult Education and Family Literacy services that will enable individuals to increase basic skills and become more productive citizens. This brief report summarizes programs and activities during the fiscal year July 1, 2004 through June 30, 2005. It cites statistics showing that there is a critical need for adult education in Illinois. Data is presented ICCB's activities in workforce preparation, ESL and civics instruction, and other areas related to adult education and literacy. It is noted that Illinois Adult Education was selected to participate in three national projects: Project IDEAL, the STAR Project, and the national ESL Content Standards Working Group. A breakdown of federal and state funding in FY 2005 is listed and the state reimbursement rates for adult education are presented. The diversity of providers is listed by count. The criteria for program approval by staff of the Illinois Community College Board are given. Innovations in instruction and future initiatives are discussed. [For the Fiscal Year 2004 edition of this report, see ED496767.]