Designed to assist state and local educational agencies and intermeidate educational units in developing administrative policies for the vocational education of handicapped students, the manual address present policy areas and administrative concerns. Guidelines are presented for policy development in the following nine areas (examples of subtopics in parentheses): planning and administration (cooperation with vocational rehabilitation and other agencies); identification of students (referrals); vocational assessment (vocational counseling and observation of work behavior); individualized education programs; program placement (least restrictive environment and periodic review); service delivery (coordination of services and vocational education modifications); facilities and equipment (accessibility of new construction and adaptive services); personnel (student/staff ratio and inservice training); and fiscal management. (CL)