The purpose of this monograph, the second in a series, is to explore the current problems, needs and concerns in rehabilitation program evaluation in Michigan. The analysis of the program and financial plans submitted by each state rehabilitation agency focuses the discussion on the following topics: (1) articulation of agency goals and objectives through a continuous needs assessment; (2) development of linkages between state agencies and the Rehabilitation Services Administration to increase information dissemination and utilization; (3) presentation of evaluation information to decision-makers without undue delay; (4) recognition of the political context within which evaluation occurs; and (5) development of a comprehensive, competency-based client-outcome evaluation strategy. The contributions of each area provide a different perspective for the identification of state agency goals and objectives. (BN)