Abstract
In March 1983 California adopted new eligibility criteria for handicapped students. The criteria for learning disabilities and language impairments included complex statistical procedures designed to identify students with a deficit in educational performance or language development of about 1.5 standard deviation units, as reflected in the scores of certain standardized tests. This article examines the development of the criteria, their relationship to federal regulations, and their tie to California's special education funding cap of 10% of student enrollment. Technical aspects of the criteria are examined, including two case studies, and recent litigation regarding the new standard is discussed. California's efforts in these areas may have implications for special education programs elsewhere in the United States.

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