In this day of "Proposition 13" type tax resistance movements, increased funding for education will be difficult annd demands for accountability will be persistent. As a result of inflation in the economy, available financial resources are shrinking in terms of real purchasing power. As tax payers refuse to increase their individual burdens, the many agencies and branches of government will increase their competition for a larger share of available financial resources. Even though the purchasing power of available funds is diminishing, the financial requirements needed to meet the educational needs of handicapp.ed students is continuing to- grow. Recent court decisions and legislation have increased the responsibility of schools in providing an education for special students. The purpose of this study of special education costs was to develop a methodology which would use actual cost data to develop cost indexes, ratios that reflect the relative costs of special education instructional arrangements and related services, other special programs, and regular education. [...]