The paper examines state policies relevant to current alternative educational environments in each state's continuum of services for handicapped children. The analysis resulted from a review of information about program models in state special education regulations and state annual program plans. State descriptions of available program models fit into three categories: either a listing of the alternative settings to be provided, a general statement insuring the least restrictive environment provision of P.L. 94-142 (the Education for All Handicapped Children Act) will be met, or a description of "levels" of services which reflect the intensiveness of the services provided. An analysis of the data is provided by the following program models: special classes, regular classes, self contained classes, itinerant teacher, special day school, institution/residential facility, homebound/hospitalized, and work experience program. For each program model, the states offering the model are listed. Noted are other program options offered by some states, and the "levels" of services approach of Maryland and Minnesota. Issues for further research, such as the rigidity/flexibility of program models and the availability of all program models for all handicapping conditions, are identified. A chart of states, their program models, and regulatory citations are appended. (DB)