This document, which is designed to help states take advantage of the Child Care and Development Block Grant, explains measures states can take to meet the requirements of the grant. General recommendations for use of the portion of block grant funds relating to quality involve increases in child care teacher salaries; increases in the proportion of teaching staff with formal education and specialized training in early childhood education; adoption of state and federal standards for adult-child ratios; staff training; education and compensation; development of industry standards for the adult work environment; and promotion of public education about the importance of adequately trained and compensated teaching staff. These recommendations are spelled out, and concrete examples are provided, in the following sections of the text: (1) an introduction, which discusses ways to look at the legislation flexibly and articulate long-term visions; (2) a review of legislative and budgetary strategies; (3) a discussion of training initiatives linked to compensation and financial assistance; (4) a list of resources; (5) a discussion of issues relating to data collection; (6) a review of issues for states to consider as they develop their plans to improve compensation and access to training; and (7) a discussion of ways in which the Child Care Employee Project can help states use block grant funds. (SAK)