This analysis is the first in a series of seven reports on the ways that the urban fiscal crisis has affected children. It discusses the issue in general, and provides an overview of the other reports. Over the past 100 years, all levels of government have developed public services responsible for the health, education, protection and physical and social development of the young. Common schooling was the earliest service provided by local government, complemented by out-of-school developmental and socialization programs. Even in the best economic periods, the out-of-school programs have been vulnerable to criticism and retrenchment. Changing demographics and a continuing climate of fiscal austerity in state and local government create debate over what services are essential, who should provide them, and who should pay for them. While the number of children under the age of 18 has declined by 11.6 percent in the last decade, the number of two-earner and single-parent families requiring support and services has increased dramatically. Through the 1970s and the 1980s, numerous states have enacted limits on state and local revenue collections and expenditures. The other reports in this series explore changes in urban children's services caused by tax limitation efforts and by unfavorable economic conditions in California, Massachusetts, Michigan and New Jersey. Each report examines changes in tax burdens and expenditure levels, changes in the decision-making process concerning children's services, and the direct and indirect outcomes of budget reductions on families and children. A list of 13 references is appended. (FMW)