This study examined differences in retention, graduation, and dropout between students in grades 9-12 in special education and regular education in the state of Texas for school years 1992-93 through 1995-96. The purpose was to gather information regarding the possible adverse effects of increased academic standards and mandatory testing on students with disabilities. The results indicate that when compared to students in regular education, students with disabilities are significantly more likely to be retained and are not experiencing the same decline in dropout rates as regular students. There is no indication that students with disabilities have been adversely affected by school reform but the size of the school district may play a significant role in whether or not students with disabilities dropout of school.