Theater activity, finances, and employment are examined in a report which summarizes research findings and recommendations originally included in a two-part study entitled, "The Conditions and Needs of the Live Professional Theatre in America." Findings indicated that a substantial increase in federal funds is required to insure the future stability of professional theater in the United States. Theater activity has increased regionally, because of the growth of nonprofit regional theaters and the emergence of truck and bus touring operations. Almost all of the current nonprofit theaters have been founded in the last 20 years, resulting in significant changes in U.S. theater. Theater audiences are better educated and more affluent than the general population. That the economic effects of theatre production are substantial is supported by statistics indicating an almost 300 million dollar contribution to the national economy. While total actor employment has increased, it has not done so as quickly as union membership has grown, and most actors receive low salaries. The study concluded that in the future the theater may have to further control costs and raise revenues, become more dependent on contributions, or decrease its level of activity due to financial constraints. Figures and tables are included. (JHP)