A survey of the states was conducted, focusing on coordination of services and financing for Part H of the Individuals with Disabilities Education Act. On average, states reported using some 21 different sources to support the service delivery system, with each of the 44 funding sources listed being used by at least one state for at least 1 percent of the Part H financing package. Other findings indicated that gaining access to Medicaid funds consumes much time and human resources at the state level. Some 25 percent of states reported that Medicaid is not used at all. Other federal programs used in financing services included the Chapter 1/Handicapped program, Maternal and Child Health Block Grant program, and the Women, Infants, and Children program. More than half the total financing appears to be from federal funds. At the state level, Mental Retardation and Developmental Disabilities programs are used most heavily. State resources are estimated to contribute one third of the program costs, while nongovernmental sources (private health insurance and voluntary health agencies) support about one tenth of the total cost of Part H services. Most states have elected to postpone fifth year program participation. Five recommendations to state and federal governments are offered. (DB)