As a result of federal legislation aimed at welfare reform, states have been transforming welfare in new ways. Critical questions remain, however, and policymakers must continue to develop new ideas and implement programs from other states. This book contributes to the learning process among states by sharing program innovations and analyses to help states realize their goals for a new welfare that helps recipients find and keep jobs that will enable them to support their families without welfare. The first section of the guide provides an overview of meeting the challenges of welfare reform. The second section, "Finding and Creating Jobs for Welfare Recipients," addresses job development, microenterprise programs, targeted state employment, and community service. The third section, "Preparing Recipients for Work," addresses assessment, support services, job readiness, education, vocational training, and work experiences. The fourth section, "Child Care," examines the issues of eligibility, copayment, and reimbursement rates and mechanisms. The fifth section, "Getting to Work: Providing Transportation in a Work-Based System," addresses the transportation dilemma, transit alternatives, and life after welfare. The sixth section, "Ensuring the Well-Being of Children Under Welfare Reform," addresses tracking families that leave welfare, safety net programs, and effects on the child welfare system. The seventh section, "Overseeing Welfare Reform: Accountability, Financing and Devolution," addresses block grants and state spending. (Contains 43 notes.) (SD)