ANALYSIS OF THE 1977 WELFARE REFORM PROGRAM SHOWED AN ADDED $20 BILLION IN COSTS, AN ADDITIONAL 10 MILLION PEOPLE ON WELFARE, AND THE POSSIBLE INCLUSION FOR COVERAGE OF MORE THAN 1 MILLION PEOPLE WHOSE TOTAL FAMILY INCOMES EXCEED $25,000 A YEAR. ALTHOUGH THE PLAN STRONGLY SUPPORTED WORK INCENTIVES CRITICS ARGUED THAT IT WOULD MAKE PEOPLE MORE DEPENDENT ON WELFARE BENEFITS. CURRENT WELFARE REFORMERS ADVOCATE REMOVING CONTROL OF WELFARE FROM WASHINGTON AND CLAIM THAT WELFARE HAS BECOME A GROWTH INDUSTRY, COMPOSED OF 5 MILLION PUBLIC AND PRIVATE WORKERS GIVING BENEFITS TO ALMOST 50 MILLION INDIVIDUALS. IN ADDITION, THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE (DHEW) CONTROLS THREE FIFTHS OF ALL NATIONAL WELFARE SPENDING. YET SOME STATES--NOTABLY CALIFORNIA, MASSACHUSETTS, AND OREGON--HAVE SUCCEEDED IN LOWERING WELFARE ROLLS. ONE CONGRESSIONAL REFORM BILL SUBSTITUTED BLOCK GRANTS FOR MATCHING PAYMENTS TO STATES TO PERMIT THEM TO REDUCE WELFARE EXPENDITURES THROUGH BETTER MANAGEMENT. MEANINGFUL WELFARE REFORM WILL ONLY OCCUR IF THE NECESSARY STEPS ARE TAKEN TO ACHIEVE IT. PHOTOGRAPHS, SUGGESTIONS FOR WELFARE FRAUD PREVENTION, A DESCRIPTION OF WELFARE ABROAD, AND AN ACCOUNT OF A WORK ASSISTANCE PROGRAM IN MILWAUKEE COUNTY, WIS., ARE INCLUDED. (AOP)