The Evaluation Department of San Diego (California) City Schools develops and implements an annual evaluation plan aimed at improving special education programs, as required under California's Master Plan for Special Education. The studies contained in the 1986-87 evaluation are presented in three sections: (1) demographic information about the student population, (2) evaluation of the special education referral process, and (3) studies of instruction and services provided in least restrictive environment settings. The demographic section considers numbers of pupils by handicapping categories, instructional settings, racial/ethnic groups, and age groups, as well as the number of decertified pupils in similar categories. The evaluation of the referral process analyzes: the effectiveness of identification, assessment, and eligibility policies and procedures; types of prereferral interventions attempted; and the extent of interagency collaboration. The section on least restrictive environment settings focuses primarily on evaluating an integration pilot project at Perry Elementary School and evaluating the mainstreaming of secondary-level seriously emotionally disturbed pupils. (Author/JDD)