This report describes current state monitoring systems in special education, identifies trends across states, and examines critical issues. Data are based on discussions with monitoring personnel, responses to a 1992 survey, input from meetings, and analysis of documents provided by the states. Analysis focuses on five areas: (1) the composition and role of State onsite monitoring teams and variations in the conducting of site visits; (2) the use of focused and targeted monitoring by states; (3) instances of state monitoring that go beyond federal requirements especially in relation to the monitoring of student outcomes; (4) the use of sanctions and commendations, and the collection and dissemination of best practices; and (5) major revisions in state monitoring systems under consideration or development. Recommendations include the continuation and expansion of technical assistance efforts by federal monitoring staff and a wider availability of technology to streamline the monitoring process in the states and eliminate the repetitiveness of data gathering. The report also calls for a re-examination of the premises of compliance monitoring, its implementation at all levels, and its role in assuring appropriate service provision. An appendix provides a detailed analysis of survey results and a table of results. (Contains 6 references.) (DB)