The paper reports findings of a California committee on the need for differential graduation standards for students with learning disabilities and/or other educational handicaps. The committee proposes minimum levels of proficiency in career education, vocational education, work experience, and independent living skills to help students gain usable skills in the labor market. Skills should be infused through the total curriculum. The broad concept of career education is examined and its principles recommended for insertion in special education, Similarly, the scope of vocational education is examined and its contributions considered. The committee asserts that differential standards should be based on applied learning in career education, vocational education, work experience and independent living skills. Recommendations are offered for such actions as establishing a task force to study policies for differential graduation standards; developing proficiency examinations based on vocational and independent living competencies; and developing inservices for parents, teachers, and community members on career/vocational and independent living skills. (CL)