This study analyzes the structural reform of local governments funding for early childhood education (ECE) as the general public still casts doubts about the fairness of ECE system in China. A particular case in point is the Shenzhen Municipal Government's reform on their ECE funding system. Because the reform efforts are more about restructuring the social welfare system than redistributing the funding resources, the local governments need to properly define governmental responsibilities before attempting to resolve the fairness issue. After initial trials and errors, such reforms need to move toward a systematic and rational design. The case of the Shenzhen ECE reform reveals the inherent contradiction between impetuous reform and rule of law and stresses the need for replacing bold reform impulse with systematized institutional planning.