The report is designed as a guideline for preservice and inservice teacher education programs and the New York local education agencies providing preschool services to handicapped children. A set of competencies was reviewed, rated and discussed by professionals in the field at two workshops and in consultation with preschool program administrators. Competencies are listed for eight major areas (sample subtopics in parentheses): (1) personal qualities of teachers (warm and positive behavior); (2) knowledge of child development (integrated knowledge of child growth and development sequences); (3) knowledge of early childhood special education (legislation, impacts on the family); (4) identification, screening, and referral (due process and procedural safeguards); (5) assessment (preparation of written reports); (6) individual educational programs (IEP) and placement (effective work with parents); (7) curriculum (development and selection of appropriate materials); and (8) instruction and management (use of the IEP to plan instruction and implementation of the IEP in the classroom setting). (CL)