This longitudinal study examined quality indicators in child care centers in three California communities in 1994, 1996, and 2000. Data were collected by means of interviews with teachers and directors and from classroom observations. Data collection in 1994 and 1996 focused on centers seeking NAEYC accreditation; the 2000 sample of 75 centers included many accredited or highly rated centers. Among the major findings are the following: (1) the teaching staff was alarmingly unstable, with the yearly turnover and centers' inability to replace staff contributing to instability; (2) compensation of teaching staff has not kept pace with the cost of living; (3) high turnover negatively affected teachers' ability to do their jobs, with the majority recommending improved wages as essential to stemming turnover; (4) director turnover was exceedingly high and contributed to staff instability; (5) new teaching staff were significantly less well educated than those they replaced, although there were no differences in professional backgrounds between former or new directors; (6) centers paying higher wages were better able to retain qualified teachers and directors; (7) the presence of a greater proportion of highly-trained teaching staff in 2000 was the strongest predictor of whether a center could sustain quality improvement over time, with wages also a significant predictor; and (8) NAEYC-accredited programs demonstrated higher overall quality than non-NAEYC programs but experienced similar levels of teaching and administrative staff turnover. (Two appendices describe the 1994-1996 study and list the data tables and figures in the report. Contains 65 references.) (KB)