This report reviews the Exceptional Student Education Programs administered by the Florida Department of Education. Findings of the review indicate: (1) during the 1995-96 school year, Florida spent 1.75 billion for special programs, services, and facilities to serve 368,710 students with disabilities; (2) the number and percentage of children served in exceptional student education programs and the cost of serving those children is increasing both in Florida and nationally; (3) two of the major factors contributing to the increase in Florida's exceptional student population are rising educational expectations and the increasing number of children living in poverty; and (4) Florida school districts vary in their use of the exceptional education program. Recommendations are provided that urge the Department to continue to develop performance measures and standards for exceptional education programs, to implement a new method for allocating exceptional education funding to school districts, and to continue to provide districts with technical assistance on the placement and categorization of exceptional students and closely monitor district performance. (CR)