State welfare agencies increasingly face the challenge of serving a caseload with multiple barriers to employment. For example, a significant proportion of clients may have substance abuse problems that hamper their ability to participate in required activities and move toward self-sufficiency. Coordinating and integrating welfare and substance abuse services can facilitate treatment and recovery and help move these individuals into jobs. Coordinating and integrating services enables welfare and substance abuse agencies to maximize resources, reduce duplication, and create new services that can enable them to address the co-occurring problems of substance-abusing welfare clients. This newsletter raises issues for policymakers and program staff to consider when coordinating and integrating welfare and substance abuse services to overcome barriers to treatment, employment, and economic independence. (Contains 21 references.) (GCP)