The monograph presents preliminary results from 27 states that received systems change model demonstration funds from the U.S. Rehabilitation Services Administration in 1986 and 1987. These funds were targeted to modify existing adult day programs for persons with severe disabilities and provide supported employment programs as alternative vocational options. A survey instrument was developed, covering: strategies used to establish local supported employment programs, implementation of Title VI-C regulations of the current Rehabilitation Act, availability of ongoing support services, conversion of existing facilities/programs, and extent of participation by persons with severe disabilities. The study's findings are presented in the following four chapters: "Policy and Program Development in Supported Employment: Current Strategies to Promote Statewide Systems Change" (John Kregel and others); "Supported Employment Implementation I: Characteristics and Outcomes of Persons Being Served" (Paul Wehman and others); "Supported Employment Implementation II: Service Delivery Characteristics Associated with Program Development and Costs" (Paul Wehman and others); and "Public Policy and Supported Employment: An Assessment of Fiscal Activity, 1986-1988" (Michael Shafer and others). The results show that the 27 states have effectively implemented supported employment service delivery systems in a short period of time, and efforts are just now beginning to lead to widespread supported employment opportunities. A final chapter by John Kregel outlines recommendations for the future of the national supported employment initiative. References accompany individual chapters. (JDD)