Policymakers must review the accomplishments of the Comprehensive Employment and Training Act (CETA), problems associated with suggestions for its reform, and incremental reforms to the program that are required and possible. Despite the fact that research generally attests to CETA's success, the system suffers from a poor public image. Particularly popular among the many suggestions for overhauling CETA are various private sector and block grant proposals. While the private sector should be encouraged to increase its participation in CETA, past experience supported by recent findings strongly suggests that private sector efforts cannot become more than supplemental parts of a remedial employment and training program. Similarly, while the block grant concept has a role to play in the total CETA picture, it would be unrealistic to expect that block grants can serve as a single tool designed to mitigate an entire range of diverse labor market problems. The National Council on Employment Policy recommends a variety of management changes with respect to the following areas: prime sponsors, federal and state roles, incentives, performance standards, minimum funding, technical assistance and research, and youth unemployment. However, any temptation to perform major surgery on CETA should be resisted. (MN)