This manual provides resource information for state staff in planning, implementing, and evaluating vocational education programs and services for special needs students. Part 1 focuses on development of vocational education programs for youth and adults with academic or economic handicaps which prevent them from succeeding in regular vocational education programs. The six chapters are entitled Vocational Education Legislation Relating to the Implementation of Services and Programs for the Disadvantaged and Handicapped, Additional Types of Services Which May Be Funded, Classification System for the Disadvantaged, Groups of Individuals Most Likely to Show Effects of Disadvantages, Criteria for Establishing Separate Specialized Programs for Disadvantaged Persons, and Illustrations of Case Study Situations. Part 2 is Vocational Education for Handicapped Students: A Guide for Policy Development. It is divided into nine sections describing policy areas for which the local education agency should develop special policies and procedures; following the description of each policy area are policy development guidelines. Five of the policy areas are oriented toward identifying and serving handicapped students--Identification of Students, Vocational Assessment, Individualized Education Programs, Program Placement, and Service Delivery. The other four sections address administrative concerns with managing the program and providing appropriate resources--Planning and Administration, Facilities and Equipment, Personnel, and Fiscal Management. (YLB)