This paper examines strategies for state and local leaders to finance supports and services for young children and their families in the wake of welfare reform. It focuses on strategies for revenue reform and for creating public/private partnerships to provide decision makers with current and relevant information on a variety of effective tools that can be used to support early childhood. The sections of the paper are as follows: (1) an introduction focusing on how increasing pressures on state and local budgets and the special challenges faced in financing early childhood supports and services can result in financial innovations; (2) "Revenue Reform Strategies," including expanding the state and local revenue base, aligning tax policies with changing economic and demographic conditions, diversifying and balancing tax systems to capture new revenue, targeting tax relief, and earmarking revenue; and (3) "Strategies to Create Public/Private Partnerships," such as employer initiatives to expand and improve services, leveraging private resources for community development, and creating comprehensive community support systems. (KB)