One of 10 documents developed by the Preschool Program of the Putnam/Northern Westchester (NY) Board of Cooperative Educational Services, the document is a summary of a June, 1981, institute on the efficacy of early childhood education for the handicapped. The institute was intended to provide state legislators, county executives, education department officials, and directors of special education with information relevant to legislative or educational decisions regarding young handicapped children. Section 1 provides an historical perspective to the development of early education programs and the results of national research to date. Section 2 provides a summary of the results of research conducted by the program on the effects of early intervention. Section 3 summarizes the history and status of legislative efforts in New York state and examines current funding to these programs through the Family Court Act. The last section gives recommendations made by the program at the institute. Major recommendations include authorizing services for all handicaps as defined in state law, authorizing services from birth to age five, and authorizing full state funding for these services. (DB)