Project Esperanza, a staff development effort, was designed in order to supplement the basic educational program for handicapped students with limited English proficiency in New York City Schools. The project served the teachers of 458 students in elementary, intermediate, and secondary schools, and provided (1) staff training and consultation; (2) materials development, identification, and evaluation; (3) educational diagnosis and instructional strategies, (4) direct individualization of instruction; and (5) outreach services. Evaluation of the program's second year of operation, based on data from pupil achievement measures, program records, and interviews and observations, showed that: (1) the program objectives for English and Spanish reading, oral English proficiency, mathematics, and cultural heritage were met for all grade levels; (2) the objective for teacher training was attained; but that (3) the objective for parent involvement could not be realized. Recommendations contained in this evaluation include more recruitment of qualified bilingual special education teachers, continued efforts to develop appropriate curriculum materials and assessment instruments, and stronger efforts to generate more parental involvement in the project. (AOS)