This report examines the status of children in Texas, and what reform efforts need to occur at the state policy level to better meet their needs. Many children in Texas live in high risk situations that seriously threaten their ability to become productive citizens. The loss to society associated with the failure of not meeting the needs of children extracts far too great a cost, on many levels, to all Texans. This report not only examines these risks and costs, but also successful programs and practices that have been shown to help prevent children from experiencing negative outcomes in the first place. This report then analyzes the current system of service delivery for children and families in Texas, highlighting the weaknesses and then offering positive models of and approaches to service delivery reform for Texans to consider. The conclusion addresses the political and philosophical changes that need to occur before any serious reform effort can succeed in improving the lives of Texas children.