This report reviews projects funded during 1989 within the Children with Severe Disabilities (CWSD) component of the Australian Government Special Education Program. The review examined four aspects: (1) identification of those currently receiving services through CWSD funds; (2) description of the type of programs being funded; (3) the role of CWSD funds in the lives of young children and their families; and (4) identification of critical issues for the CWSD subcommittee. Findings included the following: most children being served are 24 to 48 months of age living at home; most projects are initiated by community groups and provide early intervention educational programs; and most families feel that, without the CWSD-funded projects, their children would have no access to appropriate educational programs until school age. The review also identified issues in the areas of CWSD program administration, adequacy of funding for individual projects, conditions of employment, a need for ongoing professional development, and parental need for information and skills to ensure long-term access for their child to high quality programs and services. (Contains 16 references.) (DB)