THE SPECIAL REPORTS ARE DIVIDED INTO A TWO-PART DOCUMENT WHICH EXAMINES THE QUALITY OF AND JUSTIFICATIONS FOR OUT-OF-STATE FOSTER CARE OF CHILDREN IN THE NEW YORKNEW JERSEY METROPOLITAN REGION. ISSUES DISCUSSED IN THE BRIEF SEGMENTS ARE: FRAUDULENT USE OF STATE TAX MONEYS BY OUT-OF-STATE FACILITIES; POOR AND INADEQUATE TREATMENT OF CHILDREN IN THE FACILITIES; THE POLITIZATION OF THE CHILD CARE ISSUE; NONPROFIT HOMES' REJECTION OF 'MORE TROUBLED' CHILDREN; AND THE USE OF DRUGS IN THESE INSTITUTIONS AS A SUBSITUTE FOR SUFFICIENT STAFF SUPERVISION. FAMILIES ARE OFTEN URGED TO GIVE UP A HANDICAPPED, EMOTIONALLY OR MENTALLY DISTURBED, OR TROUBLESOME CHILD IN ORDER THAT THEY MAY RECEIVE STATE SUBSIDIES FOR TREATING THE CHILD. THE CHILD IS USUALLY UNHAPPY WHEN SENT FAR AWAY FROM HOME, AND EVEN THOUGH THE AGENCY HANDLING THE CASE IS REQUIRED TO CHECK ON THE AVAILABILITY OF IN-STATE FACILITIES BEFORE CONSIDERING OUT-OF-STATE HOMES AS AN ALTERNATIVE, AN OFFICIAL INVESTIGATION REVEALED THAT THE SEARCH FOR HOME PLACEMENT IN THE STATE IS OFTEN BYPASSED. PART OF THE REASON CHILDREN ARE SENT AWAY IS THAT THE STATE DOES NOT SUFFICIENTLY FUND NONPROFIT HOMES, AND ALSO THESE NONPROFIT HOMES OFTEN REFUSE TO TAKE MORE TROUBLESOME CHILDREN. THE LACK OF OFFICIAL INSPECTION OF THE OUT-OFSTATE FACILITIES IS EXAMINED, AND IT IS INDICATED THAT THE STATE IS NOT AWARE OF HOW THEIR CHILDREN ARE BEING TREATED OR HOW THEIR MONEY IS BEING USED. POSSIBLE REMEDIES TO THE PROBLEMS ARE DISCUSSED AND INCLUDE: THE FOLLOWING: ASSIGNING A CITIZEN-VOLUNTEER TO EACH FOSTER CARE CHILD SO THAT THE CITIZEN WOULD BE RESPONSIBLE FOR KNOWING HOW THE TREATMENT OF THE CHILD IS CARRIED OUT AND HOW THE MONEY FOR THE CHILD IS BEING SPENT; PASSING LEGISLATION MAKING ADOPTION AN EASIER PROCESS; RECEIVING STATE AND FEDERAL AID FOR KEEPING A FAMILY TOGETHER; AND FUNDING SMALLER IN-STATE GROUP HOMES AS AN ALTERNATIVE TO LARGER INSTITUTIONS. THE SERIES ALSO EXAMINES HOW A CHILD GETS INTO THE FOSTER CARE SYSTEM IN THE FIRST PLACE, AND THE FACT THAT OUT-OF-STATE HOMES ARE MAKING LUCRATIVE PROFITS BY TAKING IN CHILDREN THAT THE STATE WILL NOT HANDLE. (DAG)