In 1998, the Illinois statewide coalition Work, Welfare and Families, in partnership with the Chicago Urban League, undertook a study to assess the effects of welfare reform on low-income families and children across Illinois. The findings were derived from three sources: a self-administered survey of 2,166 low-income clients of Illinois social service agencies, data obtained from the Illinois Department of Human Services (IDHS), and participants in a series of focus groups conducted around the state. Key findings included the following: (1) the inability to find jobs and child care are the leading reasons for not working; (2) recipients of Temporary Assistance for Needy Families (TANF) use of the child care subsidy is increasing; (3) most families leaving TANF continue to live below the federal poverty level; (4) former TANF clients generally work in low-wage jobs, often without benefits; (5) many TANF clients report having had cuts in benefits to which they remained entitled; (6) the availability of child care, transportation, and jobs is crucial to move people off welfare; (7) more education has a strong relational impact on wages, benefits, and job retention; (8) clients who lost TANF benefits experience extreme hardship; (9) the service planning process needs improvement--the most common unmet needs appear to be child care and housing assistance; (10) utilization of supportive benefits and resources for low-income families has decreased; and (11) entry-level job availability is a major factor in reducing TANF caseloads. (Survey is included.) (EV)