Noting evidence that many American children and youth are at risk, this report suggests ways to build effective communities through effective partnerships and services that are coordinated across systems and aligned across levels of government. The report discusses the efforts of the Working Group formed to consider how federal, state, and local governments can improve results for preschool and school-aged children and their families. Also discussed are the steps necessary to achieve these partnership goals, including: (1) assessing conditions, assets, and resources to assist in setting priorities for resource allocation and accountability; (2) developing compatible goals and coordinated plans for improving results; (3) ensuring shared accountability for equity and results; (4) reviewing and aligning policies and allocating all available resources to positively affect the highest priorities in a community; and (5) designing and reconfiguring programs, services, supports, and infrastructure to help families, children, and communities grow stronger. The first part of the report is a general discussion of issues relating to at-risk youths, such as fragmentation and failure to resolve problems. This part introduces measures to meet the community's needs and allocate resources, and discusses the roles of the federal and state governments. The second part of the report discusses strategies for developing local flexibility in implementing comprehensive services focused on young children and their families. This part touches upon topics such as finance, decision making, and state and federal collaboration issues and their solutions, and provides a table of key steps for achieving better results for children and families. A list of the members of the Working Group concludes the report. (MOK)