The history and current problems of adoption services provided by the state of New York are discussed. First, statutory reforms since the creation in 1968 of the nation's first statewide adoption subsidy program are reviewed and adoption services aimed at providing permanent homes for children in foster care are described. Subsequently, the state's failure to implement statutory reforms as well as persistent problems presenting barriers to adoption are discussed. The focus of the review next shifts to a discussion of incentives for improving the state's adoption record. It is proposed that the state legislature appropriate funds for marketing research and advertising in order to (1) develop and distribute profiles of children who are legally eligible for adoption, (2) develop profiles of prospective adoptive individuals and families, (3) develop comparative profiles of foster families which adopt children and those foster families which do not, (4) initiate a statewide recruitment effort for families for children awaiting adoption, (5) centralize responsibility for coordinating recruitment acitivities, and (6) centralize responsibility for coordinating follow-up services. In conclusion, inadequacies of current and proposed methods of reimbursement for adoption services are pointed out and two alternative approaches to paying agencies for providing adoption services are described. A multi-payment approach to reimbursement is recommended. (Author/RH)