Work Opportunities and Retraining Compact of 1987

Work Opportunities and Retraining Compact of 1987 - Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to require AFDC applicants and recipients to register with a State agency for employment counseling, training, and assignment. Authorizes AFDC recipients to refuse employment which results in a net loss in their income. Provides that the mandatory participation of an individual caring for a child under age six shall be on a part-time basis. Exempts those caring for children under age three from participation in work-related programs.

Directs an agency of each State to: (1) establish a single intake and registration process for AFDC applicants and recipients; (2) determine whether training or education is needed to prepare registered applicants and recipients for employment and then provide counseling regarding prospects and needs; (3) arrange for participation in one or more of the work-related programs established under title IV of the Act or other Federal law, while coordinating such programs to enhance the availability and efficiency of services provided; and (4) develop an employment plan for each AFDC applicant or recipient. Requires the State agency to work closely with the State job training coordinating council and the private industry councils established under the Job Training Partnership Act.

Requires the State agency to provide AFDC applicants and recipients assigned to employment, training, or education programs with child care and transportation services. Requires that, for one year after an individual's AFDC eligibility ceases, the State: (1) continue to provide the child care and transportation services necessary for the individual to engage in and retain employment; and (2) assure that such individual and his family have adequate Medicaid (title XIX of the Act) or other health care coverage, with the individual paying a portion of the cost of such services and coverage determined on the basis of his or her ability to pay.

Sets the Federal share of: (1) education, training, and assignment costs at 70 percent or the Federal AFDC assistance percentage, whichever is higher; and (2) administrative and support service costs at 50 percent. Increases, by five percent in any fiscal year after FY 1988, the Federal share of education, training, and assignment costs, provided a State meets certain performance standards to be developed by the Office of Technology Assessment. Provides that such standards shall measure a State's success in reducing welfare costs and helping AFDC recipients achieve self-sufficiency, while accounting for differing conditions among the States. Requires the publication of such standards within two years of enactment of this Act.

Amends the Job Training Partnership Act to require each private industry council and State job training coordinating council to include a representative of the State agency consolidating the administration of work-related programs.