This paper, which is intended as a guide for state policymakers, examines issues and steps in building state-level school-to-work systems. Discussed in the introduction are the state's role in creating a coherent school-to-work system. The following aspects of state-level governance, oversight, and vision are considered: setting system goals, performance benchmarks and accountability, governance, system finance, integration with school restructuring efforts, industry targeting, developing skills standards, creating links to postsecondary education, equity and universal access, and structuring a school-to-work system and program evaluation. Examined in a section on state support for local action are the following topics: local program elements, recruiting employers, technical assistance to local programs, professional development for school and workplace staff, assessment of student achievement, career counseling and guidance, financial aid for students, child labor laws, insurance and liability, and strategies for building on existing programs. Concluding the guide is a brief look at the future of school-to-work initiatives. Appended is a sampling of existing school-to-work legislation in 14 states. Contains 27 references. (MN)