Gearing up for Wardrobe Refashion

This year I'm taking the plunge and going 6 months without buying anything new. Hopefully I can ~ in the words of Tim Gunn ~ "Make it work".

To get started, I'm taking this child's dress which is a favorite and lasted through two girls and making it over into a spring skirt.

The top is hopelessly stained and instead of trashing it, I'm going to give it the old college try. The bottom edge is a delightful garden of bright flowers with a little bit of sparkly beading to make it a little dressy. The whole affair is 100% cotton and is insanely SOFT. It was pretty soft to begin with, but 4 years of washing has made it even softer.

My plan is to cut the top off just above the pink dropped waistband and add *something* to make  waistband. I've got no idea how to proceed right now, but I'm definitely headed in the right direction. The back zipper actually stops just above the pink line, so it's a win/win situation. The skirt has a built in slip with lace edging that is just soooooo soft and girly.

I'm open to suggestions how to proceed. Please leave me some comments!