This hearing was held to gather information, identify concerns relevant to reauthorization of Project Head Start, and collect program directors' input on some of the immediate day-to-day problems of program implementation, such as insurance and salaries. Witnesses affirmed the current administration's support for Head Start, mentioned some program initiatives of fiscal year 1986, and responded to questions concerning availability of insurance for Head Start centers, expected new regulations mandating criminal record checks for Head Start employees, and summer unemployment compensation for Head Start workers. Other witnesses emphasized the need to maintain quality in Head Start and other preschool programs, and responded to questions about the impact of the insurance industry's refusal to provide liability coverage for child care centers. A panel of Head Start directors addressed several issues, including the extremely low salaries paid to Head Start teachers, the insurance crisis, the importance of training and the child development associate, and parent involvement. Included in the committee print are prepared statements concerning Head Start teacher turnover and salaries, Head Start programs for Navajo children, and Head Start programs of the New York City Human Resources Administration. (RH)