This KIDS COUNT report presents information on the status of Illinois children and highlights strategies used to improve the well-being of children and families. The first section, "Facing the Challenge," contains a series of conversations with experts detailing current programs to meet a six-point action agenda: (1) support new families; (2) start early in every child's life; (3) improve schools; (4) provide quality health care; (5) work in collaboration; and (6) provide family economic security. "A Look at the Challenges" presents findings on 12 indicators of well-being, including countywide data. Indicators are: (1) unemployment; (2) children receiving Aid to Families with Dependent Children (AFDC); (3) child support enforcement; (4) infant and toddler care; (5) prekindergarten and Head Start participation; (6) per-pupil revenues; (7) lack of first trimester prenatal care; (8) infant mortality; (9) youth deaths; (10) children born to single, uneducated teens; (11) abuse and neglect rates; and (12) children in substitute care. Findings indicate that the number of children receiving AFDC has increased; Illinois ranks 48th in its ability to collect child support; lack of first trimester prenatal care has improved between 1984 and 1994; infant mortality has been improving although there is still a large gap between blacks and whites; there are continued problems in affordable, accessible quality infant and toddler care; there has been a substantial increase in 10 years in the number of families headed by single, teen mothers who have not completed high school; child abuse and neglect rates have increased substantially; and out-of-home or foster care has seen an enormous increase in 4 years. (KDFB)