An evaluation addressed whether Project Independence, Florida's Job Opportunities and Basic Skills Program, had reduced welfare costs and increased the employment, earnings, and income of welfare recipients. It examined the experiences of more than 18,000 Aid to Families with Dependent Children (AFDC) applicants and recipients from 9 randomly chosen counties in Florida between July 1990 and August 1991. Each sample member was assigned at random to either a program or control group. Information about their employment, earnings, AFDC receipt, and Food Stamp receipt was collected for 2-3 years. Findings revealed both the program's potential and limitations. Over a 2-year follow-up period, Project Independence produced average AFDC savings of $265 per program group member. It increased average 2-year earnings by only $227 per program group member. During the evaluation period, the project evolved from its original design to a program with fewer resources to spend on the typical participant. For sample members who were referred to the program early on during its intended version, the program produced 2-year AFDC savings averaging $241 and 2-year earnings gains averaging $439 per program group member. For those referred to the program later, the program produced 2-year AFDC savings similar to those for the early group, but almost no earnings gain. (Appendixes include supplemental tables, response analysis, information on estimating participation rates, and a list of 24 references.) (YLB)