This report primarily addresses the question, "What are the net benefits associated with targeted early childhood investments in Texas?" The expected benefits and costs of targeted early childhood investments are estimated and projected for an illustrative cohort of Texas infants: children 0-1 year old living in families with annual incomes at or below 200 percent of the federal poverty level in the year 2000, the overwhelming majority of them in minority families, especially Hispanic. Net benefit estimates are based on the average cost of more intensive model programs as well as their estimated benefits. Targeted early interventions are assumed to offer participating children (and their families) a mix of services over a 4-year period spanning infancy up to their entry into public kindergarten, at a cost of almost $9,600 per participant per year. The report concludes that the net discounted benefits of targeted early childhood investments for participating Texas children and their families are estimated to exceed $2.47 billion. Taxpayers enjoy net benefits amounting to nearly $3.57 billion, while the net present value of early childhood investments to society is more than $6 billion. (Contains 96 references.) (EV)