The report examines effective state monitoring policies in the education of handicapped children. Following a review, in part I, of the mandate in P.L. 94-142, The Education for All Handicapped Children Act, for state education agency (SEA) monitoring, part II identifies SEA policies to monitor the quality of educational programs (Nebraska, Missouri, North Carolina, California, and Oregon). In part III, SEA monitoring of parallel state agencies are described (Minnesota, Arizona, and Virginia). The growth of interest in methodologies for quality monitoring is noted; this interest exists despite diminished resources for conducting monitoring Each of the eight state approaches is detailed in the appended material. (CL)