The J-50 Report, one of the most complicated entitlement reports that any state agency requires, provides information for funding and monitoring special education services and operations throughout California and for making special education funding allocations equitable. This manual was developed to assist local educational agency (LEA) and special education local plan area (SELPA) officials in completing the report. The first two chapters provide an introduction and general background on California special education funding between 1974-1990. Chapter III describes the regional governance of special education programs and funding through SELPAs. Chapter IV discusses the components of service on which special education funding is based and describes the methods and structure of the funding allocation. Chapter V presents a flow chart for gathering data and completing the various parts of the report. Chapter VI outlines each of the individual forms making up the report, describing the form's purpose, data required, example of a correctly completed form, common errors, and review techniques. Chapter VII discusses methods that can be used to ensure that a SELPA or LEA receives funds for which it is eligible. Appendixes contain a glossary, data collection worksheets, information on calculating reallocation and growth of special education instructional units, and information on special education federal preschool grant program funding. (JDD)