In the past, post-secondary education has been an option for welfare recipients wishing to increase their earning power. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) shifted federal policy and made it more difficult for welfare recipients to pursue a college education. Nevertheless, several work activities that count as participation under PRWORA could be provided by post-secondary education. Furthermore, PRWORA gives states considerable flexibility in establishing a role for post-secondary education in their welfare-to-work programs. When deciding how to use this flexibility, states may want to consider the following issues: the extend to which welfare recipients are allowed and supported in non-vocational post-secondary education; the extent to which states encourage development of shorter-term training programs; how college education can be combined with work to meet work requirements for welfare recipients; and the role of community colleges in providing and coordinating vocational training and other employment services. Research has confirmed the effectiveness of gaining a college degree in increasing an individual's employment and earnings and has revealed several innovative practices in the areas of state support of higher education and community college programs for welfare recipients. (Includes 12 resource contacts and 22 publications.) (MN)