This document is the report of a policy forum on interim alternative educational settings for students with disabilities involved in disciplinary actions. The report summarizes outcomes of discussions on the following topics: (1) purpose and goals of the interim alternative educational setting; (2) components of interim alternative educational settings required by the 1997 amendments of the Individuals with Disabilities Education Act (Sec. 615 (k)); (3) components/features of effective alternative programs; (4) interagency collaboration; (5) family participation; (6) policy issues/concerns and how to address them; and (7) funding considerations and possible solutions. Appendices, which comprise half of the document, include: the policy forum agenda; a list of strategies used by effective classroom managers to create classroom climates that prevent discipline problems; a list of the 10 most common discipline strategies; models and techniques that focus on correction of misbehavior; and papers on the effect of suspension-expulsion on students with disabilities, disciplining students with disabilities, and school psychology and behavioral interventions. (CR)