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The 2000 Legislature directed the Washington State Institute for Public Policy (Institute) to compare placement decisions and funding methodologies for residential care services for children in long-term foster care and to examine the best practices in other states (EHB 2487). This report finds that initial placement decisions that correspond to the level of difficulties faced by a foster child and ongoing supports appropriate to the needs of the foster family are two steps that may improve the continuity of foster care placements and lead to positive outcomes for youth in foster care.