Based on the view that the tax structure in Tennessee is inadequate and produces chronic problems, especially for the state's children, this Kids Count report identifies unmet education, health care, and resource needs of the children in Tennessee. Following introductory remarks discussing the current tax structure and state spending, Section 1 of the report presents Tennessee rates and ranks nationwide for the following indicators of child well-being: (1) low birthweight infants; (2) infant mortality; (3) child deaths; (4) teen deaths by accident, homicide, and suicide; (5) teen births; (6) children with parents lacking full-time, year-round employment; (7) high school dropout rates; and (8) children living in poverty. For selected indicators, the reduction required for the state as a whole and each county to reach the highest ranked state and to reach the national average is listed in tables. Section 2 details unmet education and training needs, including needs related to early childhood education, elementary and secondary education, and higher education, as well as an industrial recruiter's view regarding education, and information on Tennessee households owning a computer and the use of educational technology. Section 3 delineates unmet health needs, focusing on the impact of the state's child health insurance program and the physical health of Tennessee's children. Section 4 addresses unmet resource needs, highlighting the problem of income and poverty in the state, Tennessee's economic deficit, and the statewide debate regarding tax reform. Section 5 compares selected indicators in Tennessee with those for other states nationwide, asserts that insufficient revenue makes it difficult to provide even a basic level of adequate services for the state's children, and concludes that the state's economic well-being and the future of its children depend on Tennessee doing better. (Contains 55 references.) (KB)