This fact book presents findings of the Children's Defense Fund's fourth annual survey on child care funding and priorities, and consists of five sections which provide an overview of states' child care activities, information about specific policies, and contacts in each state who can provide more detailed information. Section 1 presents recent findings concerning day care funded through the Title XX Social Services Block Grant (SSBG). Section 2 analyzes the need for child care and evaluates recent state efforts to provide day care for children. Section 3 identifies core elements of a strong state child care agenda and reviews ways in which different states have addressed those elements. Section 4 provides a program-by-program and state-by-state summary of child care developments in 1986. A section of appendices provides detailed data about states' day care policies. Included are data on (1) states' total expenditures on child care through Title XX/SSBG for 1981, 1985, and 1986; (2) states' 1986 child care funding adjusted to account for inflation occurring between 1981-1986; (3) children served or slots provided by Title XX/SSBG funds, (4) income eligibility guidelines for child care assistance, (5) state Title XX/SSBG reimbursement rates for center-based and family day care providers, and (6) state-by-state totals of licensed day care centers and family day care homes as of August 1986. Also provided is a list of state officials to contact for information about child care. (RH)