I really like SRA's Basic Reading Series readers - they are mostly phonetic (with a few sight words), with really cute pictures. I wouldn't buy them new (they suffer from educational pricing
), but I've mostly been able to get them used on Amazon/Abebooks/etc for decent prices (except for Level A, part 2 - that one is just pricey it seems). There are six levels (A-F) and seven books (Level A is broken into two parts):
Level A: A Pig Can Jig, Part 1 (short A words) and Part 2 (short I words)
Level B: A Hen in a Fox's Den (CVC words)
Level C: Six Ducks in a Pond (consonant blends)
Level D: A King on a Swing (consonant digraphs)
Level E: Kittens and Children (vowel digraphs and long vowels)
Level F: The Purple Turtle (alternate vowel sounds)