The School Readiness Act of 1991 (S. 911) amends the Head Start Act to expand the availability of the comprehensive health, educational, nutritional, and social services of Head Start to all eligible children and their families by 1997. This senate report on S. 911 begins by affirming the effectiveness of high quality early childhood development programs in preparing children for school while noting that funding is below the level that would be needed to serve all eligible children. Section II provides a description and funding history of Project Head Start, highlighting the effects of inadequate funding coupled with demands to expand enrollment. Section III presents the views of the Committee on Labor and Human Resources on appropriation levels, a new Head Start Transition Program to facilitate the smooth transition of disadvantaged children from Head Start to elementary education, American Indian and migrant programs, infant and toddler programs, full-day services, and Head Start Facilities. Section IV provides a cost estimate for the School Readiness Act of 1991, indicating that appropriations for the program would be $3 billion in 1992, $4 billion in 1993, $5 billion in 1994, $6 billion in 1995, and $7 billion in 1996. Current appropriations, pay-as-you-go considerations, and costs to state and local governments are also discussed. Section V looks at the regulatory impact of the bill and Section VI provides a section-by-section analysis. Finally, Section VII presents the Head Start Act and highlights all new or amended sections. (AC)