This manual provides guidelines for early childhood programs and public school systems wishing to establish or formalize a transition process to meet the needs of preschool children moving into the public school system, based on the STEPS (Sequenced Transition to Education in the Public Schools) model developed in Kentucky. The manual begins with an overview of the STEPS model, including a brief history and a summary of the model's major components. A transition overview then discusses the need for an effective transition process and the benefits of interagency coordination. Final sections provide details about the major components of the STEPS model, addressing strategies for: (1) developing administrative procedures and processes; (2) inservice training and communication skills for staff members; (3) encouraging families to become involved in the child's preparation for, evaluation, and placement in the next educational environment; and (4) developing and using assessment and instruction for young children to prepare them for the next placement. Several forms designed to organize the transition process and to facilitate communication are provided, including a transition timeline, parent report form, roles and responsibilities, follow-up information packet completed by preschool staff, helpful entry level skills checklist, and replication activities. (Four references.) (JDD)