This is the second in a series of three reports addressing issues, problems, and potential solutions critical to the development of accessible, affordable, and quality day care in Oregon. At present, the majority of Oregon households have two or more wage earners, and the majority of Oregon children need child care on a daily basis. Priority issues discussed include: (1) quality in child care programs; (2) state regulation of child care services; (3) making child care affordable; (4) establishment of an Office of Child Care; (5) encouraging employer and corporate involvement; (6) parental leave; (7) infant and toddler care; (8) school age day care; (9) day care for special needs children; (10) child care information and referral services; and (11) liability insurance. Emerging issues discussed include teen-parent child care, ill child care, community planning, and national child care issues that affect Oregon. The concluding section of the report reviews 1987's accomplishments: legislation acted upon, seven community meetings sponsored by the Oregon Commission on Child Care, and a statewide conference sponsored by the commission. References cite literature concerning child care in other states, Oregon studies and reports, major books and reports, and periodicals and articles. (RH)