This report presents recommendations for performance indicators for Part B of the Individuals with Disabilities Education Act (IDEA), with emphasis on indicators reflecting the needs of the Education Department. Themes of the indicators include more attention given to "context variables" such as low birth-weight infants and drug abuse among women; high priority given to performance indicators highlighting results of state compliance monitoring; and development of arrays to display data on key indicators for periods of 5 to 10 years. After an introductory section, individual sections of the report provide information on the background of IDEA development, implementation, and monitoring by the Office of Special Education Programs; issues affecting special education program performance indicators, especially legislative goals and requirements; processes of developing indicators for special education programs under IDEA, Part B; suggested performance indicators for special education programs (organized into context variables, input indicators, process indicators, and outcome indicators); and uses of performance indicators. An appendix lists all the recommended indicators and includes a brief discussion of each one and suggested data sources. A second appendix does the same for context variables. A third appendix lists literature reviews, data sources, individuals interviewed, and participants in a stakeholders' meeting. (Contains an annotated bibliography of 26 items and a listing of 16 data sources.) (DB)