The recent history of efforts in Virginia to implement preventive programs in the area of mental health (MH) and related fields is briefly recounted, and evidence of the effectiveness of prevention programs is briefly reported. For a number of years in Virginia policy makers and legislators have been provided a variety of recommendations regarding the intrinsic value of preventive services. However, it is clear that a shift to prevention, community treatment, and education of emotionally disturbed children requires management, organizational, and funding strategies which are quite different from those previously employed. The same must be said for the areas of mental retardation (MR) and substance abuse (SA), especially in the areas of prevention, community treatment/services, and education for children. As in the past, current funding cuts are likely to have a heavy impact on prevention efforts and on children's programs, even though longitudinal studies and program evaluations have shown the benefits and cost effectiveness of such preventive approaches. In view of the present austerity and the high costs of long-term remedial care, cost-effective preventive programs are highly recommended. (RH)