The costs involved in providing testing and placement for handicapped children, as required by the Education for All Handicapped Children Act of 1975, do not seem to have been taken into sufficient consideration by the legislators enacting the legislation. A study of the direct costs for providing minimal testing and placement services for the 58 students affected in Arkansas' Batesville School District 1 in the 1977-78 school year showed costs of $123.60 per child, involving expenditure of 11 1/2 hours per child. Federal funding granted for these services amounted to only $35.00 per pupil. The report concludes with recommendations for remedying the situation. (Author/PGD)