This report outlines findings and recommendations of a committee study of whether the State of Missouri is in need of welfare reform. The major finding is that Missouri's current welfare system is substantially deficient and requires correction of laws, policies, practices, and resource allocation. Three major themes are the following: (1) welfare programs must be nonpunitive in design and implementation; (2) they must provide incentives, not punishments, for work; and (3) they must be sufficient to provide essential health and welfare services to families and individuals. The report is divided into three main parts. Part 1 contains an executive summary and presents major recommendations, including expansion of the "safety net" and work opportunities for the poor. Part 2 presents a general overview/review of the Missouri welfare system, and State and national trends in poverty and welfare. It describes a growing poverty rate and focuses on the effectiveness of programs such as Aid to Families with Dependent Children, Medicaid, Emergency Assistance, food stamps, commodities programs, the Work Incentive Program, and the Job Training Partnership Act. Part 3 includes six papers by members of the Welfare Reform Committee, three of which relate personal experiences of welfare mothers. (KH)