In the fall of 1995 the National Association of Child Advocates began the Children's Budget Watch Project in order to collect information regarding children's programs expenditures in 12 randomly selected states and two cities for the fiscal years from 1990 to 1995. Data were collected on the areas of income support, child care, health, abuse and neglect, juvenile justice, and nutrition. The findings indicate that many states did not adjust their Aid to Families with Dependent Children (AFDC) benefit levels from 1990 to 1995 and, therefore, the standard of living of such families declined. Across states, there was a 360% increase in child care funding for the welfare population, but only a 40% increase for the working poor, mostly due to increases in federal funding, which constituted 33% of child care spending. Federal and state expenditures on child health increased substantially, but only 40% of children received adequate care. In 1995, an average of 24% of children received no services that would ensure their safety. The reduction of funding for Social Services Block Grant will reduce the child welfare services provision. Federal resources available for prevention programs are not utilized adequately by many states. Only 4% of juvenile justice expenditures are used for after-care programs for youth. In the area of nutrition the percentage of schools participating in the lunch and breakfast programs was ranging from 27% to 100% in some cases. Between 27% and 64% of households in the states studies received food stamps in 1995. (AS)