If schools are to play the role of integrators of human services, state and local policymakers must create a favorable policy context in which schools may operate. Six critical policy issues are discussed: ensuring comprehensive service delivery to children and families; developing alternative funding strategies; ensuring family support; ensuring personnel quality; providing leadership in the development of a broad support base; and providing leadership in interagency collaboration. The efforts of five southwestern states--Arkansas, Louisiana, New Mexico, Oklahoma, and Texas--to create supportive contexts for coordinated service delivery are highlighted. A chart of selected programs in the above states is included. (4 references) (LMI)