This 1997 Kids Count report examines challenges to Colorado children and youth and how prevention and early intervention can enhance their well-being. The report includes a summary of recent research on brain development and the importance of early experience and stimulation in early intervention programs. The levels of state funding for various programs serving children and their families are delineated. The statistical report is based on 12 indicators of child well being: (1) child poverty; (2) paternity establishment; (3) early prenatal care; (4) low birth weight; (5) infant mortality rate; (6) teen birth rate; (7) immunizations; (8) health insurance; (9) child abuse deaths; (10) teen suicide rate; (11) high school graduation rate; and (12) youth unemployment. Results indicate that Colorado has met its first goal, identified in 1990's Children's Campaign, by reducing the infant mortality rate to 6.9 per thousand. There has been excellent progress on paternity establishment and immunization, and slower progress on early prenatal care and teen births. Progress on goals for child abuse and neglect, health insurance, and teen suicide is stagnant. Lack of progress on low-weight births and high school graduation rates is also troubling. The report challenges the state to promote health, intellectual, emotional, and behavioral growth of all Colorado children by championing preventive health care, quality child care, and family support during children's formative years. (KDFB)