Progress of Oregon's State Prekindergarten Program (SPP) during its first 3 months of program operation is reported. Serving mostly low-income, 3- and 4-year-old children, the SPP offers health, nutrition, education, and social services to children and their families. Parent involvement and education are important program components. This progress report provides demographic data collected in October, 1988 that afford a first look at the characteristics of the children, families, and staff involved in the 11 SPPs funded for the 1988-89 academic year. Also reported are findings of an assessment of the development of 67 SPP children from three sites, and interviews that focused on staff's and local educational leaders' expectations for and perceptions of the program. The SPP children scored nearly one-half standard deviation below the mean in all five developmental domains of the McCarthy Scales for Children. No difference was found in the scores of boys and girls. Differences were found between sites. Interview data indicated considerable optimism for the programs and overwhelmingly indicated expectations that programs would enrich children's lives and prepare children for school. It was also expected that parents would receive much-needed assistance. The report consists primarily of 20 tables, 9 charts, and accompanying text. (RH)