Studied was the effectiveness of two Ohio State residential schools, one for the blind and one for the deaf, to determine whether the state should continue to operate the residential schools. The study involved a literature review, interviews with special educators, visits to the two residential schools, visits to selected Ohio day programs, visits to selected out-of-state residential and day programs, and consultation with experts in the field. It was concluded that there is a need for both residential and day programs, that the day program has the potential for greater success with most handicapped students, and that the state needs to develop a comprehensive plan for educating the hearing and visually handicapped. The following were among recommendations reported: retention of the residential schools for students who would be better served in a residential setting, elimination of residential placement due to the lack of a local day program, improvement of the quality of day programs, development of a state plan for educating Ohio's hearing and visually handicapped children, up-grading of cottage parents in residential schools, development of a research center at each of the two residential schools, assignment of day students to special short-term courses at the residential schools, and provision of preschool facilities for children and parents within a reasonable traveling distance of the handicapped child's home. Additionally suggested were areas for research such as the development of an effective cottage parent program and followup studies on blind and deaf high school graduates. (DB)