The paper reviews recent court rulings on the appropriateness of programs and services of public school services for handicapped children. Cited are the effects of Section 504 of the Rehabilitation Act of 1973 and P.L. 94-142, the Education for All Handicapped Children Act. The first three sections address litigation in which courts have interpreted school district responsibilities to support private day school and residential placements, extended year programs, and related services for handicapped children. Considered on the topic of private day school and residential placements are placements initiated by the parents and noneducational costs associated with residential placements. Such related services issues as interpreters, psychotherapy, and catheterization are addressed. The final section provides a discussion of trends and their implications for other groups of special needs students and for general education. Topics covered include the potential liability of school districts, the emergence of a backlash movement, and the influence of budgetary concerns. (CL)