The manual's purpose is to serve as a tool to help parents and advocates to secure an appropriate education for handicapped children in New Mexico. Provisions of the federal and New Mexico laws and regulations which protect the rights of handicapped children are described. Funding for special education is explained, focusing on the state funding formula, the levels of special education programs, funding of ancillary services, and federal funding. Identification, referral, and evaluation procedures are discussed, with guidelines on parents' rights during this process. The functions of the Educational Appraisal and Review Committee, which determines eligibility, places, and develops services for handicapped children, are explored. Also discussed is the school's effort to provide continuity or necessary change in the child's program through annual review of the Individualized Education Program and comprehensive re-evaluations every 3 years. Parents' rights concerning access to school records are noted. Methods are suggested for resolving disputes between parents and school personnel. Appendices include a list of special education advocacy resources in New Mexico and several sample administrative forms. (JDD)