This report focuses on the first goal of the National Education Goals--that all children will arrive at school ready to learn. The report presents data indicating the status of young children at the start of the three year "I Am Your Child" campaign, and the progress of the nation and states toward meeting the health, family, and preschool objectives associated with Goal One. These data are supplemented with new information about children from birth to age 2. Part 1 of the report discusses the policy context of Goal One, and the need for immediate action in ensuring the welfare of young children. Part 2 of the report presents data related to 10 social indicators: (1) prenatal care; (2) birthweight; (3) children's health index; (4) immunizations; (5) family-child reading; (6) other family-child language and literacy activities; (7) support for families of preschoolers; (8) preschool participation; (9) quality of preschool centers; and (10) the quality of home-based preschool settings. (JPB)