As part of a review of California's strategy for helping recipients of Aid to Families with Dependent Children (AFDC) find jobs through the Work Incentive Program (WIN), eight demonstration programs were analyzed. There were four major findings. First, the Department of Social Services (DSS), which targets AFDC recipients with recent job experience for WIN employment and training services, should instead target AFDC recipients who lack recent work experience. To that end, legislation is needed to redesign State employment and training programs. Furthermore, increases in participant earnings, not placement rates, should be made the primary measure of the success of employment programs. Second, the most cost-effective services are job search and skill training services. Third, State and local coordination of WIN and Job Training Partnership Act services is essential if their impact on increasing participant earnings and reducing AFDC is to be maximized. Local WIN managers should be given responsibility for determining the types of services provided locally, and legislation should be created that requires DSS to develop guidelines and procedures for supplying local managers with the information needed to determine the types of services appropriate to different economic conditions. And fourth, the two primary goals of the WIN program are to reduce welfare dependency by increasing the earning power of AFDC recipients and to reduce AFDC grant expenditures. To address both goals, a two-tiered strategy is required. (KH)