This final report summarizes the findings of the National League of Cities and U.S. Conference of Mayors concerning CETA funded programs. It also examines three case studies in Chicago; Erie, Pennsylvania; and the Virginia Peninsula. The report discusses the need for cooperation between CETA and the vocational education system. Characteristics of good skill training are outlined as well as difficulties in developing CETA programs. Ways in which Title II of the Educational Act of 1976 aid CETA program development are examined. In the Chicago case study, funding of CETA programs is explained in great detail. A flow chart illustrates Chicago's Title I CETA program, including employment services and opportunities in 1977. Much discussion is given here to classroom training. Mention is made of state funding's involvement and how Chicago's program is coordinated. The Erie and Virginia Peninsula studies cover in less detail the same areas as the Chicago study. Flow charts of Erie's Office of Manpower Services and the route taken by a prospective CETA client are included. The Virginia Peninsula study contains flow charts of the peninsula's office of manpower programs organization and the manpower service delivery system. Appended are Chicago's Acceptable Occupations list and Erie's skill needs survey of manufacturing. (CT)