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This Progress Report has sought to lay the groundwork for a thorough, thoughtful study of performance-based incentives in child welfare. The report has reviewed issues that must be considered when studying the feasibility of developing a performance-based incentive system. It has highlighted many complexities and challenges that will be faced in designing such a system, and it has touched on some possible strategies for coping with those complexities. The Department is fully committed to working closely with the States to focus attention on the results of child welfare services. In the coming months we look forward to working in partnership with government officials, child advocates, researchers, child welfare practitioners and others to develop outcome measures that will help States and the nation to assess those results. We are prepared to move forward to complete the study of this important and complex issue and we look forward to being able to report back to Congress on that topic in 1999.