A synthesis of data and major recommendations from foster care studies undertaken by the states of Arizona, California, Iowa, Massachusetts and Vermont, this report focuses on areas needing improvement. Covered in detail are: (1) the foster care system, its programs and goals; (2) foster children and their natural and foster families; (3) agency staffing and services; (4) fiscal considerations; and (5) community involvement. Emphasis is placed on the need to arouse public concern for action in improving foster care systems, which in the U.S. today involve some 400,000 children. Although differing in geographic location, ethnic composition and economic structure, all five states show similar inadequacies in their foster family service systems. Preventive and preplacement services are seen as particularly inadequate: family problems go unaided until the crisis state, forcing otherwise unnecessary foster care placement. Numbers of children in foster care then become overwhelming and children's needs and problems are neglected and increase in complexity, requiring specialized care facilities which are lacking. It is suggested that other states might find this report useful. Synopses of the major studies are included in the appendix. (Author/BF)