The Oregon Annual Program Plan for fiscal year 1979 sets forth the state's policies to provide all handicapped childre (6-20 years old) with a free appropriate public education, as mandated by P.L. 94-142, the Education for All Handicapped Children Act. Addressed are the following topics: right to education, full educational opportunity timetable, priority policies, child identification, individualized education programs, procedural safeguards, least restrictive environment, protection in evaluation procedures, comprehensive system of personnel development, participation of private school children, placement in private schools, recovery of funds for misclassifed children, hearings on Local Education Agency applications, annual evaluations, and additional requirements under the law (such as monitoring and complaint procedures and nondiscrimination and employment of handicapped individuals). (CL)