This document presents the transcript of a hearing before the House Subcommittee on Education Reform about state and local level special education programs that work and federal barriers to innovation as part of efforts to reform the Individuals with Disabilities Education Act. Highlights of the testimony include: (1) progress in New York in increasing the high school graduation rate for students with disabilities and holding students and school systems accountable for academic achievement; (2) Florida's efforts to increase parental choice in the education of students with disabilities; and (3) efforts by individual school districts to improve academic achievement and reduce behavior problems and placements in alternative settings; and (4) the role of private school vouchers. Statements are included of Representative Michael Castle, Subcommittee Chairman; Representative Dale Kildee, Ranking Minority Member; Lawrence Gloecklerm, from the New York State Education Department; Diane McCaine, from the Florida Department of Education; Richard Schoonover, from the Bellevue, Nebraska, Public Schools; Sally Arthur, from Humble, Texas, School District; and Russell Skiba, from Indiana University and representing the Council for Children with Behavioral Disorders. Appendices include written statements by presenters and additional documents provided for the record. (DB)