Developed by the New York State Education Department at the University of the State of New York, the document presents preliminary study findings which recommend the removal of the current definition of "a handicapped child" and categorical labels such as "neurologically impaired". Modifications are suggested which strengthen the present screening, referral, evaluation, assessment, and the individualized education program processes. A set of program services which provide a range of special education alternatives from the most to the least specialized are considered. The need for initiation of more flexible staffing standards based on a differentiated staffing concept and related to the amount of time students spend in special education program alternatives is stressed. (Author/SBH)