This report highlights the Washington State work force training system's initiatives from July 1995 to June 1996 in the following areas: Performance Management and Accountability, School-to-Work Transition, competency-based education, linking training with economic development, public awareness, and one-stop career center system/collection of services. Highlights of the work force training and education operating agencies' initiatives include the following: (1) a performance management framework was designed in early 1996, with implementation planned in early 1997; (2) two studies were completed that evaluated the outcomes of five of the state's largest work force training programs and examined the gaps between supply and demand for work force training programs, and suggested strategies for addressing the gaps; (3) the state is building a comprehensive system to make the last years of high school the first half of a systematic transition from school to work or to continued education, and has obtained a 5-year, $26 million federal grant for implementing the system; (4) competency-based education programs were developed and implemented; (5) the agencies worked to increase the state's competitive position by linking economic development activities with the work force training system; (6) a plan to increase public awareness of work force training and education was implemented; and (7) agencies operated centers that provided career development, labor market information, access to job openings, and job search assistance; and submitted a federal grant proposal requesting funds to establish a one-stop career center system in Washington. (KC)