This report provides a comprehensive overview and assessment of the state's child care and development system. The first part of the report contains background on California's child care programs. The second part compares California's child care and development system with other states' systems. The third section identifies several major shortcomings of California's system. Given the serious flaws of California's existing system, the fourth section sets forth a package of recommendations for restructuring it, and the final section provides a roadmap showing how the Legislature might transition to the restructured system. (author abstract)