This background paper was developed for the Community Services Administration (CSA) in order to provide background information concerning welfare reform. It examines possible public assistance strategies, such as the following: (1) broad-based cash transfer (negative income tax, wage rate subsidies, demogrants, and family allowances), (2) categorical cash transfers, (3) in-kind (consumption) transfers (food stamps), and (4) composite programs. The paper also discusses various normative, economic, social, administrative, and political issues raised by the welfare reform controversy. One issue discussed at length, is that of work incentives and their importance, especially in terms of their relevance in the redesign of America's public assistance system. The potential role of the Community Services Administration in welfare reform is also analyzed. A selective bibliography on welfare reform is included. (Author/AM)