The executive summary of the ninth annual report to Congress examines progress made in implementing the requirements mandated by P.L. 94-142, the Education of the Handicapped Act, as amended by P.L. 98-199 with a specific focus on activities during the school year 1985-86. Data are presented regarding the four major purposes of the Act: (1) to assure that all handicapped children receive a free appropriate public education; (2) to assure that the rights of handicapped children and their parents or guardians are protected; (3) to assist states and localities in educating all handicapped children; and (4) to assess and assure the effectiveness of programs educating handicapped children. Information is summarized according to the following subcategories: number of students served, related services received, least restrictive environment, personnel employed and needed, the number of handicapped youth who exited special education services, anticipated service needs of students exiting the system, services in need of improvement, implementation of due process requirements, entitlement and discretionary monies, expenditures, and program effectiveness and evaluation. (DB)