This workbook addresses the need for information and guidance that can help states and communities meet the short-term and long-term challenges of developing community-oriented financing for early intervention and preschool special education services. It is intended for state officials, advocates, and task force members who carry out or assist with financial planning on a statewide, regional, or local community basis. An introductory chapter provides background information on the provisions of the Education of the Handicapped Act Amendments 1986 (Public Law 99-457) that relate to financing, followed by a chapter which provides an overview of the planning and implementation process. The workbook then presents a seven-step interagency planning and implementation process. The steps are: (1) involving key stakeholders and advocates in the planning process; (2) charting the course with a vision of an ideal service system; (3) defining the comprehensive service system; (4) identifying the existing service and financing system; (5) identifying and analyzing problem areas in the existing system; (6) developing strategies for changing the financing system; and (7) implementing changes in the financing and delivery system. Appendices contain: (1) a financing matrix designed to help states and communities to structure a systematic approach to understanding the interrelationships between a state's various financing resources and its system of services; (2) an annotated list of federal and other potential funding resources; and (3) a list of 28 additional resource materials. (JDD)