The Adult Basic Education/High School Equivalency (ABE/HSE) Services Program provides basic educational services for out-of-school youth and adults in New York City. The program offers classes in basic literacy (BL), basic education (BE), high school equivalency (HSE), and English as a second language (ESL). The program's budget is $11 million. During the 1985-86 school year, 38,800 students enrolled in program classes at more than 300 locations. Immigrants made up 48 percent of enrollees. Seventeen percent of the students received public assistance. Forty percent of students were employed full-time, 10 percent worked part-time, 30 percent were unemployed and available for work; and 18 percent (primarily mothers of young children) were unemployed and unavailable for work. Students ranged from 17-70 years of age. Student achievement data are inconclusive because so few of those enrolled provided data that could be used to measure changes in achievement outcomes. However, students for whom there were complete data for two years showed moderate improvement in all categories; 25 percent of Level One BE students progressed at least one level as did 24 percent of Level Two students and 20 percent of Level Three students. Forty-six percent of the two-year ESL Level One students advanced at least one level as did 39 percent of Level Two students; 23 percent of the Level Three students advanced to Level Four. Additionally, 4 percent of ESL students moved to BE classes and 2 percent to HSE classes. As a result of the program evaluation, recommendations were made to offer teachers in-service training in methods for teaching adults, to establish permanent class sites, and to improve distribution of materials. (KC)