Certain policies and organizational and operational principles are presented which are considered essential to meeting the real goals of early childhood programs. The current state of early childhood programs are described regarding child care arrangements, program availability by age group, and the changing patterns of eligibility. New and improved funding for States is described, and an explanation is presented about what a State needs to do to receive financial support. A systematic approach is explained in which States and communities can begin to build a set of systems in which programs can work together. Some practical examples follow of how local programs can work together. Topics covered include planning and budgeting, family information resource and referral, family education and support, child assessments, staff training and development, and nutrition services and education. Also discussed are transportation, licensing, registration, staffing standards, rate setting and payments, facilities and equipment, and eligibility determination. The appendixes provide information on the provision of the laws regarding program purposes, services, and eligibility; how the tax credits work; and how the new Claude F. Pepper Young American act will work.