This report describes the second year activities and progress of California's plan for Early Childhood Education (ECE), which in 1974-1975 included more than 1,300 schools and 22 percent of the state's children in kindergarten through third grade. Topics covered are (1) An overview of ECE; (2) Why ECE works, including parent participation, parent education, individualized instruction, staff role, concise planning, and accountability; (3) First year results in math and reading; and (4) Proposals for strengthening, continuing, and expanding ECE. The appendix gives sources of additional information about ECE. (GO)