This report was designed to help State and local officials carry out their responsibilities under the Job Training Partnership Act (JTPA), Title 1, Section 123 (a) (1), with respect to the eight percent of funds which are set aside to foster cooperation between the JTPA system and educational institutions. The report presents options for States and localities and should be helpful in strategic planning and program design. The paper is divided into three parts. Part I is an introduction to the report and a summary of the context of the eight percent component in JTPA. It describes how recent developments in education are consistent with the eight percent options in JTPA. The special characteristics of the eight percent component of the JTPA statute are presented. There is also a discussion of the first year of eight percent implementation. Part II covers goals and strategies for the eight percent. The report discusses targeting decisions, initiatives to alter institutional relationships, efforts to expand the involvement of the private sector, and the importance of administrative decisions, such as multi-year strategies and methods of distributing the 80 and 20 percent subparts of the eight percent grant funds. Part III develops many of the preceding themes by suggesting guidelines and then specific program models. The models are organized around seven hypothetical goals: improving basic skills, improving student retention and completion, educating dropouts, stimulating competency-based instruction and meaningful credentials, linking economic development with education, meeting skill demands in the private sector, and linking services into a coherent sequence. (KH)