In early 1991, a study of the Job Training Partnership Act (JTPA) education-coordination set-aside program examined how the set-aside program was being implemented in the 50 states and the District of Columbia. It was undertaken as a result of questions raised in public policy debates concerning possible misuse of the program. The concern was that the set-aside was not being used in some states in a manner fully supportive of JTPA goals. Findings indicated that states had a variety of goals in providing activities and services under the 8 percent set-aside. In 39 states, the governor designated one educational agency or more to provide services with the funds. The most common programs provided were literacy, dropout prevention, occupational training, and school-to-work activities. All states used a portion of the 20 percent funds for administration of the 8 percent program. Forty-two states recommended retaining the education-coordination set-aside program. About half the states suggested that changes were needed. Empirical evidence from three states was compared to determine uses of the set-aside. The set-aside programs were found to serve proportionately more dropouts and more "least job ready" individuals than the Title II-A programs. Isolated cases of misuse of funds were found not to outweigh the positive and innovative programs resulting from the flexibility that states have. (Chapter-end appendixes provide additional data and information. Twelve references are provided.) (YLB)