This Kids Count report is the eighth to examine annually statewide trends in the well-being of Washington's children. Following an introduction, Part 1 of the report focuses on one "success story" and one "challenge ahead" for each of the five domains examined: (1) family and community (including teen birth rate, teen pregnancy, births to unmarried mothers, divorces involving children, children in out-of-home care); (2) economic conditions (including wages, per capita income, and child care costs); (3) health (including infant mortality rate, low birthweight rate, immunizations, deaths from medical conditions, and suicide mortality); (4) education (including percentage of fourth and seventh graders meeting adequate standards on statewide tests of reading, math, writing, and listening); and (5) safety and security (including child abuse and neglect, homicides, and juvenile arrests). Successes highlighted in the report include the recent decline in teen pregnancy, improvements in wages and employment, decline in infant mortality, establishment of universal K-12 public education, and the reduction in deaths from unintentional injuries. Challenges highlighted include rekindling community concern and caring for children, reducing income disparities, helping children learn and adhere to health behaviors, ensuring that all children have the educational tools to succeed, and curbing the epidemic of violence. Part 2 of the report presents statewide trends and county information on key indicators. The report concludes with information on data sources. Appended are tables detailing the number of children in each Washington county in 1980 and 1998 as well as a statewide breakdown by age, sex, and race. (KB)