Identifies major issues related to financing education for physically and mentally handicapped children. The most imperative issue today is the insufficiency of funds to implement court-ordered and legislatively mandated special education services. Various issue factors related to finance are: (1) defining handicapped children and the services needed, (2) determining the size and distribution of the handicapped population, (3) determining the programming arrangements education agencies should make to provide the services, (4) specifying the resources needed to provide services, (5) determining the costs of the resources needed, (6) determining the total funding required, and (7) finding the best method to allocate funds to local agencies. The paper also describes an ongoing RAND study to collect cost data on special education in 14 states from 46 local and 25 intermediate education districts.
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