This document presents the New Mexico State Plan for compliance with Part B of the Individuals with Disabilities Education Act (IDEA) for the fiscal years 1995 through 1997. Part 1 presents submission statements and certification information. Part 2 then focuses on policy and procedure addressing compliance in the following areas: (1) the right to education policy statement; (2) the full educational opportunity goal; (3) child identification procedures; (4) individualized education programs; (5) procedural safeguards; (6) confidentiality of information; (7) least restrictive environment requirements; (8) protection in evaluation procedures; (9) comprehensive personnel development; (10) participation of children enrolled in private schools not placed or referred by public agencies; (11) placement in private schools; (12) recovery of funds for misclassified children; (13) hearings on public education agency applications; (14) annual evaluations; (15) additional requirements; (16) interagency agreements; (17) personnel standards; and (18) use of IDEA Part B funds. Part 3 specifically addresses application for preschool grants. Appendices comprise the bulk of the document and include texts of relevant state legislation, New Mexico's special education standards for excellence, guidelines for grant application, an agency evaluation checklist, a child count data report, due process procedures, an interagency agreement, and guidelines for professional development. (DB)