Written from the perspective of a state director of special education, the paper identifies and discusses accomplishments in special education during the 10 years since the Education for All Handicapped Children Act (P.L. 94-142) was enacted, current problems and issues, and future challenges within the following key areas of change: (1) access to education for all handicapped children; (2) continuum of services from birth to adulthood--early childhood intervention; (3) continuum of services from birth to adulthood--transition programs for older students with handicaps; (4) least restrictive environment; (5) special education manpower; (6) monitoring of special education programs/related services; and (7) programs for gifted students. Despite the increasing financial challenges facing special education the future is likely to bring solidified regular and special education partnerships, programming for unserved and underserved groups of handicapped students, improved implementation of the continuum of services delivery approach, increased effective integration of severely handicapped into the public schools, maintenance of procedural safeguards along with efforts to reduce the legalistic burdens on special education, increased emphasis on technical assistance in state monitoring of special education programs, and continuation and enhancement of gifted programming. (DB)