Public schools must make available special education and related services to all IDEA-eligible (Individuals with Disabilities Education Act) students with disabilities beginning at age three and through age 18. Services to students, ages 19, 20, and 21, are permissive. That means the decision to serve 19, 20 and 21-year-old students is determined by the policies of the school district board of trustees [20-5-101(3), Montana Code Annotated (MCA), and Administrative Rules of Montana (ARM) 10.16.3122]. Students with disabilities receive a wide range of services, including specially designed instruction, transition services, assistive technology, and related services such as speech-language therapy, occupational therapy, and physical therapy. Both the type and the extent of services a student receives are individually determined based on the educational needs of the student. This document serves as the special education report to the 61st Montana Legislature. The following topics are discussed: (1) Students Served (Special Education Child Count and Student Enrollment; and Student Identification by Disability); (2) Funding (State Special Education Appropriation for 2007-2008 School Year; Growth in Reimbursement of Disproportionate Costs; Instructional Block Grants and Related Services Block Grants; Expenditures of State, Federal, and Local Funds Comparison by Year; The General Fund; Per Student Expenditure Comparisons at the District Level; and Medicaid); and (3) Accountability (Montana's State Performance Plan). (Contains 29 tables.)