The Welfare Reform Act of 1996, with its emphasis on mandatory work, will have a serious impact on communities throughout California. In 1995-96, a total of 760,000 people received Aid to Families with Dependent Children (AFDC), while 139,713 of these were community college students. To respond to the Act, the California Community Colleges should develop additional funding sources and maintain flexibility in allocating funds; ensure that AFDC students and the revenue that they generate are retained; and maintain quality in serving additional welfare recipients, specifically regarding a likely corresponding increase in demand for health services. At the local level, colleges should work with area agencies to create jobs that provide adequate compensation and self-esteem and lead directly from educational programs. Educational programs should be designed that provide all citizens with adaptable and transferable skills, with special care being taken to ensure that curricula provide training within the timeline allotted for receiving welfare by the Act. Programs should also remain open to all and assess competencies to ensure graduates' employability. Finally, local academic senates should take a leadership role in ensuring that colleges retain and attract welfare recipients. Contains 18 recommendations for local academic senates. (BCY)