This literature review on special education finance is based on computerized bibliographic searches, nominations from leading special educators, and citation searches. It is organized into four sections covering the following topics: (1) costs, (2) funding sources, (3) funding formulas for special education programs and services, and (4) fiscal implications of major trends in special education. Included under the topic of costs are the purpose for cost analysis, methodologies and models used, and cost estimate studies. The second topic, funding sources, includes descriptions of federal, state, and local allocations for special education programs and services. The third section summarizes funding formulas for special education, their associated incentives and disincentives, and criteria for evaluating various types of funding formulas. The final section focuses on the fiscal implications of emerging trends such as inclusion, the integration of special education and regular education, and coordination among federal and state categorical programs. (Contains 59 references.) (DB)