The document contains hearings on the Education for All Handicapped Children Act (P.L. 94-142) to amend the existing funding formula to devise a special allowance for high cost areas. Among the testimony offered are statements from the following individuals: S. Davis, state superintendent of public instruction of Virginia, on areas of the law needing revision; P. Hepner of Advocates for Children, an organization of parents and citizens interested in the rights of all children to appropriate educational services in New York City; A. Berman, Senator from Illinois; G. Hoffman, State Representative from Illinois; C. des Jardins, director of the Coordinating Council for Handicapped Children, a coalition of more than 100 parents and professional organizations in the Chicago area; J. First of the Illinois-Indiana Race Desegregation Assistance Center; R. DeWitt, president of the Colorado Association for Children and Adults with Learning Disabilities; B. Bernstein, executive director of the Legal Center for Handicapped Citizens; R. Dawson, superintendent of the Colorado School for the Deaf and Blind; R. Werner, Jr., director of special education of the Missouri Department of Elementary and Secondary Education; R. Waier, superintendent of North Kansas City (Missouri) Schools; T. O'Donnell, attorney at law; C. Clark, president of the Missouri Association for Children with Learning Disabilities, on parent perspectives of problems relating to P.L. 94-142; C. Moore, parent of a physically and mentally handicapped child; B. Ladd, president of the Parents' Campaign for Handicapped Children and Youth, presenting a report from Closer Look; R. Barber, director of the Children's Defense Fund (Mississippi office); and F. Weintraub, assistant director for government relations of The Council for Exceptional Children. Appended are materials including a position paper on corrective therapy services to handicapped children, sample letters, and an Educational Resource Information Center (ERIC) Report paper titled "Nineteen Steps for Assuring Nonbiased Placement of Students in Special Education" by J. Tucker. (SB)