This annual report details activities by the New York State Commission on Quality of Care for the Mentally Disabled, which oversees the public and private service system for individuals with mental disorders. The report notes that during 1994-1995, the Commission's cost-effectiveness studies identified over $15 million in potential savings, and its fiscal investigations resulted in the criminal conviction of one home administrator, the revocation of a medical license, and a judicial ruling enabling the enforcement of a $7.5 million Medicaid fraud judgment. Also noted are Commission policy studies on restraint and seclusion in psychiatric facilities, its systematic evaluation of private psychiatric hospitals, and its day-to-day oversight activities in responding to complaints and reports of abuse or neglect. The first section of the report describes Commission investigations of psychiatric centers and recommendations on the governance of restraint and seclusion practices in psychiatric facilities. The second section describes the Commission's investigations into program inefficiency and the outcomes of these investigations. The third section provides information on the number of cases the Commission reviewed and the outcomes of selected cases. The fourth section describes actions the Commission took to ensure quality services to children with mental disorders. Commission investigations into facilitated communication are also reviewed as are the Commission's activities in early intervention programs. The fifth section discusses the Commission's administration of protection and advocacy programs. The final section describes planned activities. The appendices include a list of 1994-95 publications and a list of regional offices. (CR)