The purposes of this study were to determine the proportion of Atlanta public high school 11th and 12th grade students classified as functionally literate, marginally literate, or illiterate and to determine the significant predictors of students' performance level. A total of 430 students in randomly selected classes were administered the criterion-referenced Reading/Everyday Activities in Life test (R/EAL). Demographic data were gathered on the subjects, and student performance was analyzed on each of the nine subtests. Results showed that 84% of the students tested were classified as being functionally literate, 14.8% were classified as being marginally literate, and 1.2% were classified as being illiterate. Race was found to be the strongest predictor of student performance on the R/EAL test. Other strong predictors of student performance were plans to attend college after high school, school location, and year in school. It was concluded that the need for instruction in functional literacy skills appears to be particularly crucial for Atlanta public high school students planning to enter the job market immediately after completing high school. (Author/JM)