This yearbook contains information on federal policy actions, state policy, important reports, statistical data on exceptional students served and personnel employed; and directory listings of key offices, officials, and organizations concerned with special education. Generally, the yearbook covers reports issued from July 1987 through June 1988. General information papers are provided on: federal legislation; judicial decisions; the executive summary of the Tenth Annual Report to Congress on the Implementation of the Education of the Handicapped Act, 1988; the status of handicapped children in Head Start programs; Special Education in Canada (1988); and the future of research in special education. The second section provides United States statistics on exceptional children served. Section III includes annual awards. Directory information is provided in Section IV including: United States Congress Committees related to the handicapped; Office of Special Education Programs; the Council for Exceptional Children; United States Directors of Special Education; United States Coordinators of Programs for the Gifted and Talented; and Canadian Senior Government officials in Special Education. Fifty-eight tables provide a variety of statistical data concerning children served, their handicapping conditions, the educational environments utilized, reasons for exiting the educational system, and number of anticipated services needed. (DB)