Described is a study of foster care services for 31,911 children in eight southeastern states. It is explained that questionnaires were completed by state and county foster care officials and by foster families. Results are reported to indicate that the foster child sample was largely white preteens, evenly divided between the sexes. The effects of funding, recruitment, licensing, and the role of the foster parent on the current supply of foster homes are discussed. Cited are potential sources of demand outside the current foster care programs such as the low income family, abused and neglected children, institutionalized children with special needs, and delinquent children. Estimates of the unmet need for foster care are given. Proposed is a phased effort to close the gap between supply and demand. Among recommended actions are providing a clearer role definition of the foster parent, heightened recruitment efforts, development of licensing standards, and establishment of training programs for foster parents and foster care workers. Appended are study questionnaires. (CL)