Book excerpt: This book discusses state child care and early childhood education policies, particularly their relationship to the economy. It provides a framework for policymakers who are deliberating child care and early childhood education policies; outlines the range of recent state legislation; describes initiatives of Massachusetts and Washington; and suggests ways of integrating child care and early childhood education policy approaches on the state level. State child care policies have been implemented for the purposes of reducing the cost of child care; contributing to the expansion, accessibility, and quality of child care; and providing support to parents in education and training programs. State funding of early childhood education has grown considerably over the past decade. But in most cases, state implementation of early childhood education programs is limited in scope and takes the form of half-day programs. State early childhood education programs seldom provide comprehensive services. Recently enacted state legislation illustrates an emerging trend toward expanded services. State policymakers are considering potential benefits of expanding child care and early childhood education policies under a comprehensive approach to a state's economy. Two tables provide state-by-state information on regulation of child care centers and family day care. Citations number 88. (RH)