This primer is designed to provide a step-by-step guide for state policymakers and state agency officials interested in assessing the literacy skills of the people of their state. Chapter 1 describes the importance of assessing the literacy skills in each state. Literacy is discussed as an economic necessity, a requirement for a healthy democracy, and a critical first step toward meeting the national literacy goal. Chapter 2 describes the five significant steps that have been taken since 1988 to improve knowledge about literacy and provides examples of successful literacy assessments. Chapter 3 provides a seven-step guide to designing and implementing a statewide literacy assessment. Chapter 4 explores three options for conducting state literacy assessments: participating in the National Adult Literacy Survey being conducted by the Educational Testing Service, conducting a separate statewide assessment, and developing proxy measures by using secondary data and national surveys. The costs and benefits of each approach are discussed as are the benefits of using multiple methods to refine each. Chapter 5 includes a discussion of how the results of a state literacy assessment fit into an overall literacy policy strategy that advances welfare reform, economic development, and education initiatives or other national or state policy goals. (Appendixes include a closer look at the steps that are necessary for conducting a literacy assessment, 6 endnotes, and a list of 19 works consulted.) (YLB)