This report reviews the current conditions of New York's children. Topics include: (1) demographic conditions, trends and projections; (2) economic conditions; (3) child care; (4) education; (5) health and nutrition; (6) school-age pregnancy and child bearing; (7) alcohol and drug abuse; and (8) racial and ethnic group inequality. The report reviews the implications and costs for the state of these conditions. Fundamental principles that should guide the development of programs designed to improve the situation are stated. A number of programs and activities that contribute to the improved welfare of New York's children are described. These programs are based on three principles: (1) responsibility for the welfare of children is shared by the family and the broader society; (2) prevention is of primary importance; and (3) a broad, community-wide approach involving all segments of society is required for the development of a new sensitivity to the welfare of children and families that recognizes the profound consequences of present unsatisfactory conditions. Operating principles shared by current programs include comprehensiveness and flexibility in provision of services, personalized attention on the part of program staff, ready accessibility of services, recognition of child and family in context, and responsible involvement of clients in the program. (RH)