The report describes a study to assess 27 states' current data capabilities as they relate to information requirements of P.L. 94-142, the Education for All Handicapped Children Act. The first part of the report summarizes study results, including such major findings as that most states were reasonably able to meet proposed federal requirements in one or two of the four major data categories (children, personnel, facilities, and fiscal information), but few were strong in three or four categories. Projections of children needing service, although available were generally weak, as were projections of personnel. Fewer than three-fourths of the states could report special education program costs, and very few could provide them by handicapping conditions. The major problem found was inadequate data monitoring and validation. Recommendations are made for streamlined data requirements, phasing in data requirements, technical assistance for states, and leadership role for the Bureau of Education for the Handicapped in compliance. Part II of the report describes a methodology for estimating the incremental costs of meeting the proposed data requirements for P.L. 94-142 and applies that methodology to six states. (CL)