The state-of-the-art review of delivery of social services to American Indians living on reservations demonstrates that the basic problem is not whether Indians living on reservations are entitled to receive such services, but which government entity will be financially responsible. Chapters cover: (1) legal status of Indians (roots of conflict); (2) trends toward intergovernmentalization; (3) case law on eligibility; (4) barriers to state involvement in delivery of social services; (5) state role in federally funded programs; and (6) representative state programs. Among the recommendations listed for improving social services are that states having significant Indian populations should receive federal assistance for state welfare programs serving Indians, that states should be held accountable for delivery of services to Indians, and that revenues should be based on need rather than on population. Three characteristics needed for solving conflicts are suggested: Indian self-determination and sovereignty be preserved/strengthened; solutions be flexible and involve both state and tribal authorities in the decision-making process; and solutions be individually tailored on a community-by-community basis. Concluding recommendations also provide two approaches to assist in resolution of conflict, i.e., intergovernmental agreements and optional direct funding. (AH)