This paper, which focuses on remediation at community colleges, is part of a series published by the Center for Community College Policy, designed to support state and local policymakers, as well as educational leaders who are interested in policy issues related to the two-year postsecondary sector. Providing academic support for remediation has become a major function of the community college and remains one of the greater challenges. Research indicates that from 30 to 90% of all community college students need some form of remediation. Long perceived as a high-cost item, remediation efforts might actually be cost-effective if one considers that students who eventually earn bachelor's degrees potentially generate more than $74 billion in federal taxes and $13 billion in state taxes while costing only $1 billion to remediate. Students need remediation for a variety of social, economic, and psychological reasons, and if they are to succeed, accurate assessment is needed to determine what the student's actual needs are and provide appropriate services. Recommended are a variety of policy options, including: (1) clarifying the roles of community colleges in meeting the education needs of skill-deficient youth and adults; (2) requiring accurate assessment and placement of students in learning environments; and (3) determining the specific knowledge, skills, and attitudes that functionally literate adults need in the 21st century. (AF)