Hearings were held concerning community-based mental health services for children. In an opening statement, Chairwoman Schroeder discussed issues of children's mental health and suggested that the committee study: (1) the effectiveness of community-based care in a model service system in California; (2) the importance of having service systems in place prior to a crisis; (3) creative funding strategies; and (4) the impact of inappropriate services on families. A fact sheet discusses the prevalence of childhood mental health problems; youth homelessness; lack of mental health care for children; inappropriate institutionalization; inadequate research in childhood mental health; inadequate insurance; and limited federal support. Statements from other committee members were included in the record. Seven other individuals presented statements. These statements included descriptions of the attempts of the State of Virginia to restructure its services and funding to better meet the needs of troubled youths and families; a demonstration community-based services project at Fort Bragg, North Carolina; and the California model system of care, a system expanded from the earlier Ventura model. (BC)