Discussed in the report are the state's programs for exceptional children in 1967 and 1968, the proposed events for 1968-1969, the scope of the special education program, a special education model, and a breakdown of four geographic regions. Services and planning for consultation by the State Department of Education, psychological services, diagnostic centers, vocational rehabilitation cooperative programs, education for children with emotional disturbances, and centers for the deaf-blind are considered. The following topics are also included: the President's Committee on Employment of the Handicapped, a study institute for parents of preschool deaf, traineeships and fellowships (special study institute), a planning conference, Title IV-A projects, a state Title IV pilot study, Title III projects, the Handicapped Children's Early Assistance Act of 1968, the planning conference bureau, state adopted textbooks, special olympics, visiting educators, a special education musical group, and the Alabama Federation Council for Exceptional Children. (LE)