The report discusses financing respite care (short term care of the handicapped to provide family relief) services for the developmentally disabled (DD). Respite care is examined as a component of a comprehensive service delivery system for the DD, and the scope of respite care services as conceptualized by its advocates is reviewed. Nationally recognized taxonomies of services for the DD generally emphasize respite care as a temporary living arrangement component of an individual and family support service, although certan advocates of respite care have suggested that it be viewed as a comprehensive supportive family services network. Many states are developing respite care programs which may be viewed as one component of a family support network. The nature of federal funding and the classification of services are examined. The financing of respite care models is discussed in terms of out of home residential placement, out of home family placement, in home health and attendant services, in home sitter and companion services, family support services, and respite care as day activities. Also discussed are start up and core staffing of respite care programs. (Author/DLS)