Under Kentucky's Foundation Program Law of 1954 as amended, which provides for classroom units for exceptional children, the number of such units has increased from 99.3 to 29 districts in the Program's first year to 1,060 in 148 of the state's 193 districts in 1969-70. Units for the mentally retarded increased most, from 22.5 to 732.3, in 130 districts. In 1969-70, 66 districts provided the services of a speech correctionist; however, only one county served all seven categories of handicaps. Thus, 24.1% of the total need, excluding that of speech therapy, was being met. Of 27,437 speech handicapped children, only 9,165 were served, resulting in a need for 152.4 additional units. Needs in all areas exceeded the number of qualified personnel; local school districts were found hard pressed in providing facilities, equipment, and supplies. Provisions of the Special Education Act of 1948 as amended for reimbursement of excess cost of teachers' salaries are detailed. (JD)