The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 gives states the opportunity to devise unique welfare programs that include client participation in educational activities. States receive block grants rather than funds earmarked for certain kinds of programs. Pennsylvania's welfare reform plan permits welfare clients to participate in educational activities after their work requirement hours are fulfilled and to establish "Individual Development Accounts" to save money for educational activities at approved institutions. The plan allows welfare-to-work program providers to provide 4 weeks of remedial education. Clients may participate in educational activities based on the Welfare Department's very flexible guidelines and the caseworker's opinion. Northampton Community College's Adult Literacy program shows specific effects of Pennsylvania's reform plan. After a mandated 8-week job search program, students participate in such programs as English as a second language, adult basic education, general equivalency diploma, welfare to work, single point of contact, and short-term training programs. The college offers 20-week classes and welfare-to-work programs funded through a collaborative effort between the Welfare Department and labor and industry. These programs integrate basic education skills and world-of-work components. New funding sources have been located. Collaboration is seen as the major factor that distinguishes successful and thriving providers of adult education services. (YLB)