A study examined the state spending patterns for dislocated worker assistance under Title III of the Job Training Partnership Act (JTPA) and the Economic Dislocation and Worker Adjustment Assistance Act (EDWAA), as evidenced by Department of Labor (DOL) semiannual reports and other DOL data, for program years 1985-88. JTPA Title III provides funds to states for programs tailored to the specific needs of workers who have been laid off or who have received notice of layoff as a result of a mass reduction in force or the permanent closure of a plant or facility. EDWAA was enacted, to replace Title III, in 1988. Changes brought about by EDWAA include new allocation procedures, the establishment of state rapid response teams, and increased emphasis on skill training. Among the findings of this report were the following: (1) despite differences in the amounts of funds allotted for Title III, state expenditures were relatively consistent for 1985-87, averaging about $185.6 million per year; (2) in 1988 the amount spent jumped by 43 percent--from $172.4 million in 1987 to $246.5 million in 1988--after EDWAA was enacted and limited the amount of formula-allotted funds that can be carried over from one year to the next; (3) as states increased their spending for dislocated worker assistance, the cost per participant increased by 28 percent--from an average of $940 in 1987 to $1,200 in 1988; (4) 11 states spent more than 10 percent of their 1988 allocation for activities to facilitate implementation of changes in dislocated worker assistance brought about by EDWAA; (5) some states received a much higher proportion of discretionary funds, allotted by the Secretary of Labor, than the proportion of funds allocated to them by formula. (The document includes five references, two figures, and eight tables.) (CML)