This study examined issues regarding children who receive special education services outside of their home school district--specifically, reasons for these out-of-district placements in Ohio. The study reviewed relevant documents concerning federal and state requirements and funding, and consulted with Ohio Department of Education (ODE) personnel, 70 parents of children receiving out-of-district services, and 24 school district and regional resource center administrators. The study analyzed reasons for out-of-district placements, implications of such placements, and parental involvement. The study found that 10 percent of children receiving special education services were placed out-of-district, with children having less common disabilities and/or more severe disabilities more likely to be placed out-of-district. It also found that ODE's rules regarding categorical unit funding of special education services should be more flexible and that parents may not fully understand their rights. The study recommended that: (1) ODE actively pursue improved services and training to families of children with disabilities; (2) ODE continue to fund and evaluate alternative approaches to the delivery of special education services; and (3) ODE consider changes to state funding policies to allow local flexibility in providing services while complying with federal regulations. Appendices include survey forms and a statement of state and federal oversight responsibilities. (Contains 18 references.) (DB)