This loose-leaf format handbook is designed to aid vocational teachers, vocational administrators, and others who have responsibility in conducting or administering services to the handicapped and disadvantaged in Alabama under Public Laws 94-142 and 94-482. The information contained in the handbook is compiled from answers to questions on vocational education directed to the Special Needs Unit of the Alabama State Department of Education. The guide is organized in six chapters. Chapter 1 summarizes legislation pertaining to the handicapped and disadvantaged (Public Law 94-482), while chapter 2 explains the concept and general use of excess cost funds for both the handicapped and disadvantaged. In chapter 3, specific information on dealing with the academically and economically disadvantaged, including criteria, classification, identification procedures, responsibilities, and use of excess cost funds is presented; while in chapter 4, information about handicapping conditions is provided, with directions for identification, placement, excess cost funds, and provision of services. Chapter 5 explains general concepts and programs pertaining to both the handicapped and disadvantaged, such as related services, separate special programs, and least restrictive environment. Chapter 6 gives answers to frequently asked questions pertaining to the handicapped and disadvantaged. (KC)