This report examines the adequacy of the standard of need used by the State of Nevada to determine eligibility for the Aid to Families with Dependent Children program (ADC). Nevada's standard of $285 per month for a family of 3 ranked 49 out of 54 states and political entities. The current standard is reviewed in relation to the present cost of the goods and services that the program is intended to provide. Alternative approaches that could be used to modify the current standard are analyzed in depth. Testimony from administrators, welfare recipients, and the public is also considered. Recommendations include the following: (1) the standard of need should be modified to reflect the current standard of living; (2) the Federal Poverty Guidelines, reduced by the amount of dollars allocated under the Thrifty Food Plan (Food Stamps), should be used as the basis for determining the new standard; (3) in determining the average grant payment levels, the State should attempt to pay 100 percent of need, and no less than 70 percent of the revised standard. Statistical data are included on 20 tables. The appendices include the following: (1) information and tables from the ADC Program Recipient Characteristics Study; (2) Poverty Income Guidelines Analysis; (3) Consumer Price Index Analysis; (4) Client Expenditure Survey Analysis; (5) Market Basket Survey Analysis; (6) a review of charts showing what Nevada's need standard and payment levels for different household sizes would be under different options; (7) a letter of support to the governor from community service groups; and (8) a list of State ADC needs standards in order of dollar amounts. (FMW)