The Project on State-Level Child Outcomes was initiated by the U.S. Department of Health and Human Services to examine the effects on children of waiver policies related to state welfare reform efforts prior to the passage of federal welfare reform legislation. This report details the project's examination of child well-being in the context of five distinct state welfare programs. Part 1 of the report describes the process by which researchers, state administrators, and evaluators came to agree upon a common core of measures of child outcomes. Part 2 highlights features of the states' demonstrations and evaluations that presented challenges and opportunities for assessing child well-being and integrating findings across the five evaluations. This part describes the waiver policies in five states (Connecticut, Florida, Indiana, Iowa, Minnesota), describes their evaluation designs, discusses the implications of variations in the states' policies and evaluations for the synthesis and integration of findings across the five evaluations, proposes analytic strategies, and describes how findings from the project can increase understanding of welfare reform policies and their implications for child development. The report notes that the project will allow a comparison of various policy packages which anticipated provisions in the 1996 national welfare legislation and will permit an examination of the processes mediating the impact of welfare policies on children. Two appendices include a list of key project participants. Contains 16 references. (KB)