During its second year, Maryland's Employment Initiatives (EI) program continued to help Aid for Dependent Children applicants and recipients obtain unsubsidized employment. It provided employment and training opportunities to Work Incentive Demonstration Program participants at two sites: Baltimore City (OPTIONS) and Wicomico County (Basic Employment Training or BET). Program components included remedial education, skills training, welfare grant diversion funded on-the-job training, work experience, and job search assistance. Primary emphases were training, financial incentives, and supportive services. Funds from the Department of Social Services (DSS), the Job Training Partnership Act Agency, and Department of Human Resources continued to be pooled to maximize available resources. Major changes in the OPTIONS project were that the OPTIONS II program model became operational and job search assistance was expanded. BET's major change was administrative; emphasis on training for clients who did not find employment was increased. To expand EI into new areas, funds were awarded to the DSS's in Allegany, Anne Arundel, Dorchester, and Frederick Counties and the Harford County Commission on Women to operate EI projects. A newly established Office of Welfare Employment Policy was charged with overseeing EI projects. (Appendixes include selected baseline characteristics of EI clients, descriptions of expanded EI projects, and placement data.) (YLB)