A study was conducted in New York State to quantify the investment made in selected occupational programs at public two-year colleges and the returns from this investment to graduates, employers, and the state government. A survey was mailed to a representative sample of New York State employers with 100 or more employees, covering areas of technician hiring practices, salary differentials based on education and experience, training preferences, and alternative hiring preferences. In addition, a sample of 15 public two-year colleges was surveyed for information on technical training costs, placement information, number of graduates, revenue sources, and related topics. Survey responses from 85 of 152 firms and 11 of 15 colleges were synthesized to produce estimates of training costs in data processing, health service/paramedical, engineering/mechanical, and business/commerce technologies; and estimates of the benefit streams derived. Study findings included the following: (1) employers indicated that schools were not a major source of skilled workers; (2) on a statewide basis there was a misalignment between the supply of graduates in the disciplines and the positions available in those disciplines; and (3) in health service/paramedical fields, and to some extent in business/commerce, the salary differential for two-year college graduates was not enough to create competitive rate of return over a 10 to 20 year period. The study report discusses the implications of the findings for educational policy and future study. (HB)