This report provides an Iowa state senator's perspective on developing state policies to foster collaboration at the service delivery level to meet the needs of children and families more effectively. The first chapter provides two case examples of children that the current system fails. It suggests that simply providing more funding or requiring agency administrators to collaborate will not address individual needs. The second chapter defines collaboration in the context of state policymaking. It describes three elements essential to the collaborative process and four organizational levels at which it must occur. It then introduces the concept of first, second, and third generation approaches to collaboration. The third chapter relates Iowa's experience in fostering collaboration in the child welfare system, through "decategorizing" state funding for such services. It explains some of the potential benefits for families of decategorization and the conditions necessary to develop such a system. The fourth chapter describes a family development grant program. It seeks to link welfare-to-work, child development, and child welfare concerns by focusing on overall family needs. The last chapter discusses how state policy initiatives, drawing from the experiences of these two Iowa programs, can foster collaboration and provide greater service intergration. (16 references) (LLL )