Abstract
The Sixth Annual Report to Congress on implementation of P.L. 94-142 is critically reviewed. The Annual Report fails to alert Congress that students who are difficult to teach and manage appear to be at significant risk of erroneous classification and inequitable treatment. This risk is due to the variability in identification and referral procedures across states and local districts, as seven years of national “child count” data indicate. These data were analyzed and interpreted to mean that school variability may reflect rational behavior by personnel faced with resource constraints and student diversity. Thus, attempts to fine tune current special education policy, especially for individuals classified as mildly handicapped, by “tightening” eligibility standards is both illogical and ill-advised. Implications for both policy and special education research are discussed.

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