The report and an accompanying executive summary of a statewide needs assessment on young handicapped children in Iowa examine services available, effectiveness of services, and needed changes. The introduction provides an overview of State Planning Grants, Iowa's history of early childhood special education, and this project's approach to planning. The methods section outlines the purpose of the State Planning Grant, the needs assessment process, and the involvement of the State Plan Advisory Council for Early Services. Descriptions of the needs assessment sample population, analysis techniques, and a problem solving approach are also included in the methods section. The results section provides a thorough discussion of the descriptive and inferential data analyses for the professional and parent needs assessments and an analysis of the parent forums. The recommendations list proposed changes based on the data collection. Recommendations center on the need to: improve access to and receipt of services; explore case management issues; increase communication and coordination among service providers and agencies; increase the quality of parent participation; and offer an array of training options to parents and service providers. Twenty-four figures and 18 tables illustrate the data, and 6 appendices comprising the greater part of the report include detailed analyses of the questionnaire items and responses for both the professional and the parent needs assessments, a summary of state plan suggestions, and the parent forum questions. (DB)