This document comprises the testimonies presented at this hearing and related documents. A new study on trends in family income in the United States from 1970 to 1986, prepared in the Congressional Budget Office, is included, as is a fact sheet on children and families in poverty. Millions of children and families have been left out of the so-called "economic recovery": despite many months of economic expansion, almost 13 million children remain in poverty. The testimonies of the following people are included: (1) Madgelean Bush, executive director, Martin Luther King, Jr., Community Center; (2) Yvonne V. Delk, executive director, Office for Church in Society, United Church of Christ; (3) Robert Greenstein, director, Center on Budget and Policy Priorities; (4) Jonathan Kozol, author; (5) Matthew E. Melmed, executive director, Connecticut Association for Human Services; (6) Robert P. Sheehan, President, Boys and Girls Home and Family Services; (7) Chenay Costen-Boyce, board member, Rural Day Care Association of Northeast North Carolina, Inc.; and (8) homeless parents and students. Also included are the prepared statements, letters, and other supplemental materials presented by the speakers and other interested parties. Tables illustrate data, and lists of references accompanies some of the materials. (BJV)