This report concerns the present status of children in troubled families and the quality of the child welfare, juvenile justice, and mental health services they receive as compared to 10 years ago, based upon the findings of the House Select Committee on Children, Youth, and Families. In Chapter 1, "Children and Families in Crisis," the following findings are discussed: (1) more children are in out-of-home care; (2) children's needs are more severe; and (3) children who are receiving services still risk harm. In Chapter 2, "Children's Services in Crisis," the following findings are discussed: (1) state and local agencies and courts are overwhelmed with cases; (2) services are limited due to staffing problems; (3) current services are uncoordinated and fragmented; (4) financing mechanisms and funding are inadequate and misdirected; (5) Federal enforcement and oversight are weak; and (6) essential data are unavailable for a complete analysis. In Chapter 3, "Promising Programs to Prevent Placement," the following findings are discussed: (1) prevention and early intervention are less costly and more effective; (2) there is growing support for family preservation and community-based services; (3) there has been growing interest in comprehensive, coordinated, and integarted children's services; and (4) despite the increasing interest, there are still too few programs and little financial support. Seven charts are included. The following items are appended: (1) 13 tables; (2) 177 references; (3) children in substitute care survey instrument; (4) an annotated list of Federal programs affecting children in state care; (5) a listing of state-by-state litigation on behalf of children in state care; and (6) principal findings of a survey, "Addicted Infants and Their Mothers." Additional and dissenting views on the status of troubled children and welfare services are included. (JS)