To investigate fiscal retrenchment effects on states' related services for handicapped youth and to help evaluate Public Law (PL) 94-142 regulations, researchers conducted 120 telephone interviews with state education agency staff in charge of related services and with other educators and citizens in 16 states representing different geographical regions, proportions of special needs populations, educational revenue sources, and levels of interest in special education. "Related services" are corrective, developmental, or supportive services to assist handicapped youth in special education, such as speech therapy or counseling. The researchers sought to discover how related services are provided, what strategies are used to manage service-delivery problems, and what the future of related services is. Interview results are presented in three sections. The first section notes PL 94-142's effects on state programs and related services and lists problems in services delivery, including economic and financial shortages, institutional and political constraints, and lack of interagency coordination and communication. The second section describes seven strategies used to manage these problems, such as interagency agreements and cost-sharing arrangements. The third section discusses factors curtailing or favoring related services in the future. An appendix outlines other types of agencies and federal programs providing related services. (RW)