Investigated by this study were effects--at state, county, and family levels--of federal cuts and changes on day care services in New York State, focusing on areas outside New York City. At the state level, the study examined policies shaping delivery of day care services to the poor and state systems for tracking changes in funding and children served. At the county level, the project tested data gathered from the state, examined changes in policies and practices in day care provision, and compared the scope and results of county assessments of the impact of policy changes. (Counties examined in detail were Albany, Broome, Erie, Monroe, Nassau, Onondaga, Rockland, Suffolk, and Westchester.) Finally, the project staff interviewed approximately 35 families to learn how policy changes took effect at this level. Despite limits of time and methods, the study documented a marked decrease in the number of children served as a result of policy and funding changes at the federal, state, and local levels. Also indicated were hardships caused by funding changes and the need for prompt state and local action to aid the poor in securing day care. To that end, seven specific recommendations were directed to the governor and state legislature and to the New York State Department of Social Services. (RH)