The report examines the services provided to handicapped students at the Minnesota School for the Deaf and the Minnesota Braille and Sight Saving School. The evaluation focused on three critical concerns: adjustments to meet changing demands for service, efficient and effective operation, and the advisability of continuing to provide residential schools for hearing impaired and visually impaired students. Section I reviews the history, organization, and budget of both schools, while sections II and III analyze the schools separately in terms of issues and trends in the field; admission, placement, and exit procedures; academics; and potential future roles. The report makes recommendations throughout the text, including the need to develop written criteria for admission and to increase cooperation between residential schools and local school districts. Suggestions consider use of the Braille School for multihandicapped students and changing program and philosophies at the School for the Deaf. (CL)