This study compared the actual resource costs and outcomes of instruction in inclusive classrooms with the costs and outcomes of special class/integrated instruction in a California school district where both types of programs were operating. Four students included in general elementary education classrooms were matched with four pupils from special education classes who spent part of their day in general education classes. Results showed that inclusive education costs were an average of 13 percent lower than those of special class placement. Comparison of general and special education resource contributions found that special education contributed only 65 percent as much of total program costs for included students when compared with special class pupils. Also, special education contributed an average of $1,655 per general education inclusive class, compared with less than $35 per class where special class students were partially integrated. Analysis of student outcomes indicated that included students interacted more with peers and general education teachers and less with special education staff than the partially integrated group, but special class students demonstrated more student-initiated interaction and a higher level of engagement. There were no differences in perceived achievement of student educational objectives. (Contains 19 references.) (DB)