There are an estimated 167,000 children in early care and education programs in Massachusetts. In 2000, the state department of education commissioned a study of the cost and quality of early care and education in the state. This report and executive summary are the first from the study, addressing early care and education for preschool-aged children in full-day, year-round centers. The study drew a random sample of 90 community-based centers. To measure the quality of care, a single preschool-aged classroom was chosen in each of the centers in the sample. Data collectors observed classroom for 3 to 4 hours that were typical of the usual care environment for that classroom provider. Data collectors also interviewed providers about their education and training. Center directors or owners were interviewed by a separate research team about center character tics, enrollment, staffing, revenues, and expenditures. Findings include the following: (1) overall, full-time care and education for preschoolers in Massachusetts is comparable to or better than similar preschool care in other states; (2) Massachusetts' preschool classrooms vary considerably in the quality of care and education they provide; (3) centers with lower child to staff ratios, better educated teachers, and that make greater use of teachers rather than assistant teachers provide higher quality care; (4) low- and moderate-income families are less likely than higher income families to have access to quality care and education; (5) labor is the single largest component of center costs, and labor costs are strongly associated with observed quality of care and education; and (6) higher quality early care and education costs significantly more than lower quality care and education. (Contains 22 references.) (HTH)