This report examines the operation and outcomes of Illinois' welfare programs in fiscal year 1995. The Illinois Department of Public Aid's new emphasis on providing incentives/assistance to move welfare recipients from welfare to work is explained. Next, the following programs are discussed: Aid to Families with Dependent Children (AFDC) and Job Opportunities and Basic Skills (JOBS); Project Chance, which is designed to help AFDC clients prepare for/participate in the world of work; Opportunities, a specialized, "one-stop" education and training program offered at 10 community colleges across Illinois; the Teen Parent Initiative/Young Parent Services program, which is tailored to help youth break the generational cycle of welfare; the Food Stamp Employment and Training program; and Earnfare, which was developed to create a work-related source of income for people to replace the state's now-defunct Transitional Assistance program. Each program description includes information on some/all of the following: major accomplishments in FY95; numbers/characteristics of clients served; outcomes (including employment placements and client wages); and detailed expenditures. Concluding the report are legislative changes passed in FY95 that will affect welfare services. Fifty-three tables/figures are included. Appended are a glossary and index of statutory report requirements relating to the FY95 report. (MN)