Five policy papers address methods of funding vocational/special education and relative benefits versus expenditures for different employment training systems for moderately and severely handicapped persons. The first paper critiques the present vocational education funding system for handicapped students. Federal funding mechanisms, state and local matching of set-aside funds, and problems in complying with legislative mandates are discussed. Tentative suggestions for improvement are offered. The second paper reports Abt Associates study fundings regarding the impact of the 1976 Vocational Education Amendments on services to special needs populations. Patterns of expenditure of set-asides for special populations are highlighted. The third paper proposes changes in the Vocational Education Act to clarify and simplify the present law and make federal spending for vocational education more effective. It calls for centralization of purpose and decentralization of process in delivering vocational education. The fourth paper reports an investigation to determine whether the costs and benefits of the train-place-train approach to competitive employment are comparable to the costs and benefits of individuals working in extended, sheltered employment. The fifth paper reports an analysis of several cost and benefit dimensions associated with Project Employability, a job placement program for moderately and severely handicapped individuals. (YLB)