Designed to guide preschool reform efforts and stimulate widespread interest and involvement, this publication calls for statewide, systemic reform to provide a continuum of community-based, family-centered, prevention-oriented services to children and their families. The publication begins by identifying the factors that enhance school readiness. Benchmarks are suggested for states to use as measures of their progress toward the national education goal that "all children in America will start school ready to learn" by the year 2000. These benchmarks include the percentage of: (1) children between the ages of 0 and 5 participating in public and private preschool and child care programs; (2) children participating in accredited programs or programs meeting comparable state standards; (3) eligible children enrolled in Head Start and public preschool programs; (4) communities with family support and education services; (5) low-birthweight babies; (6) pregnant women receiving first trimester prenatal care; (7) women under 20 giving birth; and (8) children fully immunized by age 2. A sampling of initiatives that have been implemented to respond to one or more of the objectives related to the school readiness goal are included. Various studies that have proved the economic advantages of investing in children are reviewed. Particular programs are described in terms of their benefits for children, cost benefits, scope, and participation figures. A 49-item bibliography is included. (AC)