A "needs statement" is a fundamental component of any proposal. Needs must reflect the problems and challenges of the people that the grant is intended to serve (a.k.a., "target population"). You must show data-supported evidence of a local need because you are usually going to spend the money locally. Grant Readers are often instructed to ignore citations of state and national studies and statistics unless they are connected to local data.
Recommended Sources
Gavilan College Institutional Research - many Gavilan research reports and links to other sources
Center for Educational Planning - Santa Clara County Office of Education
San Benito County Office of Education