In spite of funding constraints and legislatively mandated growth caps, the California community colleges, as the major provider of occupational education in the state, must play a significant role in serving and retraining workers displaced by plant shutdowns and mass layoffs. In response to these problems, a study was conducted to identify the sources of funding, linkages, and legislation that community colleges can draw upon in providing services and programs to meet the unique needs and problems of displaced workers. Interviews with state and local officials and a review of the literature revealed that: (1) the typical displaced worker differs substantially from most unemployed Americans, being older, less educated, more experienced, accustomed to higher earnings, and less likely to have had recent job search experience; (2) displaced workers need counseling, job search assistance, retraining, income assistance, psychological support, and information on available resources; (3) programs for these workers should be flexible, use existing resources, maintain linkages with industry and labor, and provide comprehensive services; (4) important linkages for community colleges include the California Economic Adjustment Team, the Employment Development Department, and local community task forces; and (5) recent legislation can help to implement and support displaced worker programs. Recommendations and a selected bibliography are included in the study report. (DAB)