This guide is intended to provide guidance to state and local leaders in identifying the need for finance reform; understanding and evaluating the pros and cons of alternative financial approaches; and designing strategies to build long-lasting public support. Chapter 1 reviews the key forces pushing for reform and outlines principles to guide reform. Chapters 2 through 5 describe an array of policy options for state and local reformers across four critical and interrelated areas of finance: revenue generation, budgeting, partnerships, and financial and other incentives. Chapter 6 offers approaches to build the public and political support for change. Each chapter contains references. Two appendices list the members of the Finance Project's national review and advisory panel and the working groups. (KB)