Problem: The welfare system is often criticized; two common problems are the disincentive to work when benefit reductions match earnings, and the loss of dignity that accompanies entry into the welfare system. Proposed Solution: Seven counties in New York State have developed the Child Assistance Program (CAP) to address these problems with welfare. In the CAP program, single parents with children who help the state in tracking down child support from absent parents are given benefits which, while lower than traditional welfare benefits, are permitted to remain as the family's income rises as far as 150 percent of the poverty line. Savings, penalized under traditional welfare programs, is encouraged. The application process is arranged and case workers are trained so that the indignities of the traditional welfare program are reduced. Straightforward financial assistance replaces complex forms of reimbursement and food stamps. Evaluation: The program is reasonably successful; recipients find the process less damaging to self-esteem, and the financial effects of the program offer a greater opportunity to work out of poverty rather than simply to maintain a family. The requirement for tracking down child support, however, significantly limits the number of families which can benefit from the program. Contact: Michael Warner, Project Manager, Child Assistance Program, Division of Income Maintenance, New York State Department of Social Services, 40 N. Pearl St., Albany, NY 12243. Phone: 5128-486-5123. Citation: "Innovations 1992." Governing Magazine, Volume 6, October 1992, p. 39. Keywords: welfare reform