This report describes the progress that the 16 states in the Southern Regional Education Board (SREB) region have made in meeting the first of the Goals for Education 2000: that all children will be ready for first grade. The report describes SREB states' efforts in: (1) increasing the percentage of at-risk children served by prekindergarten and kindergarten programs; (2) providing programs and services to support preschool children and their families; (3) assessing all children's readiness before the beginning of first grade; (4) establishing programs in 100 percent of the districts to help children who are not ready for first grade; and (5) providing programs to meet children's needs for other types of care. Among the major findings are the following: The number of children served in state-funded prekindergarten programs increased from 80,000 children in 1989 to more than 400,000 children in 2000, more than the number served by Head Start. In seven SREB states, the number of children served by Head Start and state programs equals or exceeds the number of children in poverty. From 1989 to 2000, the number of SREB states requiring kindergarten increased from 5 to all 16. Every state has a reading initiative that helps schools identify first graders needing additional help. Thirteen SREB states have immunization rates equal to or higher than the national average. Every SREB state has a federally approved plan to reduce the number of children without health insurance. The report concludes by asserting that although much has been done to prepare children for school, many needs remain. (Contains 18 references.) (KB)