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This document uses interviews with 18 practitioners as the basis for an examination of the barriers to and promise of strategies intended to build effective, comprehensive, community-based service initiatives for children and families in a deregulated policy environment. Four major barriers are identified: (1) structural/legal barriers, reflected in legal constraints, regulations, and procedural requirements; (2) barriers to collaboration related to staff knowledge and commitment, which may result from a lack of technical expertise or rigid attitudes among administrators and service providers that limit the ability of initiatives to work collaboratively; (3) political support barriers, which relate to challenges of establishing and maintaining external support for an initiative among political and policy officials, key constituency groups, and the general public; (4) management information and evaluation data system barriers, which concern difficulties in constructing cross-agency data networks and outcomes-based assessment systems necessary for effective planning, budgeting, management, and evaluation. Policy directions at the state level holding promise for overcoming these constraints are also delineated: (1) coordinate state agency program strategies and resource allocation policies; (2) move toward an accountability system based on achieving desired results for children and families through reducing procedural regulation of service delivery; (3) invest in cross-agency information infrastructures; (4) encourage more integrated pre-service training experiences for service administrators and front-line providers; (5) provide monetary incentives for collaboration; (6) help ensure multi-year funding for comprehensive initiatives. A description of The Finance Project and a list of resources available from the Project's Working Papers Series conclude the document. Contains 22 references. (KDFB)

The impending devolution of program responsibility from the federal government to states and localities will probably increase their responsibility for designing and funding strategies for services to children and families. This paper presents state-by-state profiles of patterns of spending for education and other key health, welfare, and social services. The paper identifies factors that appear to drive spending costs: the need for education and other children's services in the state; the ability to pay (fiscal capacity); and the willingness to pay (fiscal effort). This context is then used to draw implications with regard to state spending for education and non-education children's services in the near future and beyond. The report looks at changes in state spending over time, as well as recent cross-sectional state data. In summary, the salience of indicators of need and ability to pay indicates that most states will be greatly challenged in financing these programs in the years ahead. Furthermore, the strong negative relationship between willingness to pay and noneducation children's spending--especially among the low-spending states--implies that finding the funds to support noneducation children's services in the absence of federal fiscal incentives and service mandates may prove especially difficult in these states. In general, a combination of increased needs, slower growth in fiscal capacity, and a reduced federal role in setting standards and providing financial support will make it extremely unlikely that the vast majority of states can sustain the per-child spending patterns of the previous two decades. Three figures and 16 tables are included. Information on the Finance Project and its available resources is included. (LMI)