This report summarizes results of initiatives established to achieve goals of the New York State Board of Regents to reform the state's preschool special education program. These goals, consistent with the provisions of the 1997 reauthorization of the Individuals with Disabilities Education Act, view special education as a service to support children's education, rather than a place, and emphasize program accountability, student results, and access to general education. State legislation was enacted in 1996 to amend the preschool special education programs in the following areas: allowance for a second independent pupil evaluation, establishment of a continuum of services from less to more restrictive settings, provision of transportation, transportation costs, a 3-year moratorium on self-contained programs, development of procedures for program reapproval, requirements for business plans by program providers, and development of clinical practice guidelines. The reform initiatives have resulted in dramatic increases in the provision of special education services in integrated settings and improved cost effectiveness. The program served 55,780 preschool students in 1995-96, a 48 percent increase since 1992-93. Additional activities include quality assurance efforts in counties with higher than average numbers of students in separate special class programs. (DB)