This report is submitted pursuant to the "sunset" review procedures enacted by Chapter 1270, Statutes of 1983 (Senate Bill 1155). Chapter I of this report provides background information on the special education program. Chapter II contains our comments on the findings made by the State Department of Education (SDE) in its sunset review report. Chapter III presents our response to the recommendations made by the SDE. Finally, Chapter IV summarizes all of our recommendations regarding the special education program.