The first of three sections in the booklet on Washington state standards describes administration of state and federal funds to programs for handicapped students. Discussion centers on such topics as fund distribution, state allotments for foster homes and hospitals, P.L. 94-142 (the Education for All Handicapped Children Act) flow through funds, discretionary funds, and school district actions required to receive funds. The second part of the document is intended to assist Washington educators understand and implement state regulations regarding the individualized education program (IEP) for handicapped students. Topics covered include purpose of the IEP, the IEP process checklist, definitions, sample IEP forms, directions for completing the IEP forms, and a sample documentation of the IEP meeting notification. The final part addresses questions regarding regulations on such issues as postsecondary education; definitions of screening, assessment, and evaluation; and the makeup of a multidisciplinary team assessment. (CL)