The study investigated the validity of the process of reevaluating a child's need for continued special education services especially the biasing effects of the teacher's referral statement on the decision of the multidisciplinary team. Psychoeducational profiles describing two children were distributed to 108 multidisciplinary teams in New York City. Team members (first individually and then in groups) were asked to read the case summaries and select an appropriate placement from six program alternatives. Each case was prefaced by a referral statement indicating whether the teacher supported a change of placement into a least restrictive environment. Previous review of each case by a panel of experts had determined that neither child met the state's criteria for identification of the handicapped. Results indicated that the teams' placement recommendations, like those by the individual members, were substantially biased by the teacher's opinion. Each team's placement decision was also significantly influenced by the opinion of the psychologist in the group. Although the teams tended to move children from the special class into the least restrictive alternative slightly more often than did individuals, differences between the group and the individual decision making process were not significant. Five appendices and a 69-item reference list is included. (Author/DB)