Alternative early childhood education policies that states might consider are discussed in this five-part report. Likely consequences, and pros and cons of each alternative are outlined. Section I presents various funding options, including the funding of existing programs, voucher mechanisms, project grants, and formula funding. Section II examines regulatory options, such as required conventional licensing, stricter licensing for public programs, accreditation for public programs, teacher certification and licensing, and mandated provision of space or funds by developers and child care benefits by corporations. Section III describes capacity-building mechanisms, including resource and referral agencies, technical assistance by state and local governmental agencies, improvement of teacher training through community colleges and four-year colleges, and teacher certification and licensing. Section IV discusses alternatives for program administration, including a new office of early childhood education or an interagency coordinating council in the state departments of education, child care programs funded by the emerging workforce programs, a state agency that licenses child care or administers Head Start, a state office for children, and a coordinating council that integrates policies from several agencies. Section V offers a personal view of the ways states ought to structure their system of early childhood programs. (RH)