Although the impetus for this study was a Wilder administration budget-reduction proposal to consolidate the management of the Commonwealth's 124 local social service agencies into 38 agencies, the scope of the study included an examination of administrative costs and automation needs of local agencies. The subcommittee concluded that consolidation proposals imposing financial penalties on local social services agencies that fail to consolidate should not be pursued and that incentives for cooperation and consolidation would be a more productive avenue to pursue. The subcommittee determined that it was not advisable to separate administrative costs from direct service costs in the appropriation act but that it would be beneficial to include language in the act stating that the appropriation for administrative costs includes eligibility and social worker salaries. The Department of Social Services' Application Benefit Delivery Automation Project (ADAPT) was endorsed by the subcommittee with a reminder to continue to work closely with localities in the development and implementation of the project.