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Examines the financial system of children and family services in the United States. Implication of existing financial systems for legal, political, administrative and attitudinal challenges in implementing community-based service delivery; Benefits of alternative financing approaches to educational and psychological consulting communities.

This chapter tracks the early effects of the 1988 amendments to the federal Chapter One programme on the policies and practices of four large urban districts (Atlanta, Chicago, Dade County and Dallas). Specifically, the article analyses reform efforts in the areas of programme co‐ordination, parental involvement, school‐wide projects and school performance accountability. Drawing on an historical analysis of the evolution of relations between the federal government and local school districts since the programme's inception in the 1960s, the authors argue that the apparently only modest impact of the 1988 reforms on the practice of Chapter One programmes to date is a result of a basic conflict between the intent of the reforms (to enhance educational effectiveness) and the political context as it occurs at the local level (an orientation toward bureaucratic and regulatory compliance). [ABSTRACT FROM PUBLISHER]