The report discusses the California State Department of Education's California Master Plan for Special Education, a comprehensive approach to provide special education services to handicapped children. The plan establishes a system that identifies children in need of special education, places children in the programs best suited to their needs, evaluates each child's progress periodically, moves key educational decisions from the state to the local level, and provides parents with opportunities to influence decisions about their child's education. The Master Plan's development is reviewed, and its goals are considered. Other aspects examined include student placement, resource specialist programs, parent and student rights, funding, evaluation requirements, community advisory committees, and staff training. Six Responsible Local Agencies (agents responsible for coordination of the Master Plan) are described in terms of such facets as identification, volunteers, inservice training, advisory committees, and parent recruitment. Some problems arising from the Master Plan are discussed, along with its positive impact on teachers, handicapped and normal students, parents, and society in general. An appendix discusses federal law regarding the education of the handicapped. (DLS)