This report is an analysis of the problems facing urban areas in relation to their preschool programs for the disadvantaged. The main focus is New York City day care centers. Subjects include day care and preschool education, history of the origin and expansion of day care centers, New York City's day care, and educational issues encompassing legislative proposals, sectarianism, and religious issues. Chapter VI relates to national problems and discusses various states' solutions. The following subjects are also discussed: the interpretations of day care's responsibility, the validity of its solutions, new agencies with related functions, new federal legislation, and new theories of education and child development. The report ends with a proposal for the beginners' day school. (DO)