The state plan for the education of children with handicapping conditions required by P.L. 94-142, the Education for All Handicapped Children Act, specifies goals, priorities, and programs of New York State. Following submission statements and certifications, a section on the purpose of the plan lists learning goals for all children in the state and provides detailed information on specific handicapping conditions and related programs and services. The policy of least restrictive environment is addressed. An overview section highlights such topic areas as early childhood special education, problems in urban and rural settings, incarcerated handicapped youth, and coordination among agencies serving handicapped children. Another section on guaranteeing handicapped children's rights describes federal and state laws and regulations regarding the education of handicapped children. Two separate sections address New York's public and nonpublic school system and the State Education Department, Office for Education of Children with Handicapping Conditions respectively. The final section presents a detailed picture of how the state will meet its responsibilities for educating students with handicapping conditions. The plan is organized according to six foci: monitoring, training, technical assistance, information dissemination, direct services, and funding. Statewide totals for children served are appended. (CL)