Most of the federal government's support of disadvantaged young children has come through Head Start and Chapter 1 programs. Chapter 1 has mainly been used for pull-out remedial reading and mathematics programs in the elementary grades. The National Association of Early Childhood Specialists in State Departments of Education (NAECS/SDE) is concerned that Chapter 1 methods are inappropriate for younger children, and recommends that Chapter 1 be re-evaluated and restructured, especially in terms of the manner in which children are selected to participate, programs are evaluated, services are delivered, and programs are administered. Of special concern are the reliance of Chapter 1 on standardized testing for selection and program evaluation and the way in which its requirements interfere with cooperative learning. NAECS/SDE proposes that for Chapter 1 to effectively serve children through age eight, each state, district, and school must have its own Chapter 1 plan--a plan that meets the needs of its own children. It is also proposed that: (1) Chapter 1 programs be coordinated with other family-oriented publicly funded programs; (2) alternatives to pull-out programs be found; (3) state and local funds be used to match Chapter 1 at prekindergarten levels in order to encourage high quality full-day programs; (4) alternatives to standardized testing be found; and (5) emphasis be placed on staff training and parent involvement. (SAK)