This report examines workforce preparation in the state of Illinois within the following general areas: (1) the current and future workforce preparation needs of business; (2) higher education's role in relation to the roles of secondary education, business, labor, and government in providing workforce preparation programs; and (3) the effectiveness and responsiveness of colleges in meeting current and future workforce preparation needs. In addition, the report examines results of other studies that addressed workforce preparation, and policy directions developed by the Committee to Study Preparation of the Workforce for improving the preparation of the workforce. Specific topics include discussions of population, industry, and occupational trends; employment supply and demand; public and private sector job training providers; and the K-12 and postsecondary educational systems within the state. In addition, the report examines the challenges facing colleges and universities in seven areas: (1) basic preparation for work; (2) workplace competencies; (3) retraining to improve competitiveness; (4) opportunities in education and employment; (5) educational transitions; (6) linking education and work; and (7) accountability. Appendices list the membership of the Committee to Study Preparation of the Workforce and provide a 40-item bibliography. (GLR)