This handbook offers guidance to parents and staff in developing day care programs which include handicapped children. In Section 1 of the handbook, terms commonly used to describe disabilities are defined. Section 2 presents a picture of the current situation in New York City regarding attitudes toward handicapped children and options for their education. The basic issues to be faced by any day care center wishing to integrate handicapped children into existing programs are discussed in Section 3. Existing integrated and specialized programs, city agencies concerned with education of the handicapped, and additional community resources in New York City are identified in Section 4; and funding sources for programs for young handicapped children in the New York City area are described in Section 5. Two brief papers found in Section 6 provide personal accounts of experiences in integrated and specialized day care programs. (ED)