This report presents information from a study of recent state efforts to improve the education system and the implications of these efforts for children with disabilities. The study evaluated educational reform and state policy in 18 states. A major finding of the study was the limited involvement of the special education community in the standards movement, a finding which raises questions concerning whether the reforms have any real chance of benefiting all students. Chapter 1 reviews the new standards-based education reform movement, systemic reform for implementing new standards, national standards, and the Goals 2000 program. Chapter 2 analyzes the ways that states have actually implemented their new standards in the areas of curriculum, assessment, accountability, teacher preparation and professional development, finance, and governance. Chapter 3 examines how the special education community has and has not been involved in the new education reform movement, detailing its involvement in each of the areas listed above. Finally, Chapter 4 considers the implications of new education standards for the variety of children in the nation's schools. (Contains 17 references.) (DB)