Transforming the welfare system presents governors with unique opportunities, hard choices, and creative challenges. Change will require continued commitment to welfare, educational reform, and economic development. Governors can improve the status of private citizens and private businesses. The Family Support Act of 1988 signaled major changes in the nation's welfare system. The Job Opportunities and Basic Skills Training (JOBS) program under Title II of the act is patterned after earlier welfare-to-work initiatives and is based on success in helping recipients of public assistance obtain jobs. The legislation was supported by numerous organizations in the crusade for welfare reform. It is imperative that such commitment be continued and that the flexibility afforded in the legislation be used to create improved service delivery systems for individuals traditionally locked out of the labor market. The Family Support Act can break the cycle of poverty by providing high quality services to children of JOBS participants. The funding provisions for JOBS and supportive services are complex. By targeting resources to potential long-term recipients, states should adopt strategies for the development of human capital. This focus necessitates more expensive education and skill training, but a human resource development approach can yield larger and more long-term savings for programs. Governors will provide effective coordination with other programs, which will be a major determinant in achieving the goals of the Family Support Act. Successful implementation of a human resource strategy will require the support and involvement of the educational community. Supportive services, including child care, will be necessary to allow recipients to overcome barriers to participation. Research indicates that early interventions may be instrumental in reducing high school dropout rates, teen parenting, and future welfare dependency. (13 references) (NLA)