This document uses interviews with 18 practitioners as the basis for an examination of the barriers to and promise of strategies intended to build effective, comprehensive, community-based service initiatives for children and families in a deregulated policy environment. Four major barriers are identified: (1) structural/legal barriers, reflected in legal constraints, regulations, and procedural requirements; (2) barriers to collaboration related to staff knowledge and commitment, which may result from a lack of technical expertise or rigid attitudes among administrators and service providers that limit the ability of initiatives to work collaboratively; (3) political support barriers, which relate to challenges of establishing and maintaining external support for an initiative among political and policy officials, key constituency groups, and the general public; (4) management information and evaluation data system barriers, which concern difficulties in constructing cross-agency data networks and outcomes-based assessment systems necessary for effective planning, budgeting, management, and evaluation. Policy directions at the state level holding promise for overcoming these constraints are also delineated: (1) coordinate state agency program strategies and resource allocation policies; (2) move toward an accountability system based on achieving desired results for children and families through reducing procedural regulation of service delivery; (3) invest in cross-agency information infrastructures; (4) encourage more integrated pre-service training experiences for service administrators and front-line providers; (5) provide monetary incentives for collaboration; (6) help ensure multi-year funding for comprehensive initiatives. A description of The Finance Project and a list of resources available from the Project's Working Papers Series conclude the document. Contains 22 references. (KDFB)