The Lincolnshire County Council report said children with special educational needs (SEN) were suffering distress because they are unable to get places in special schools. It also highlighted a lack of boarding placements for SEN pupils and insufficient provision for those on the autistic spectrum.
The report said the lack of provision is putting excessive pressure on mainstream schools and local head teachers are concerned because "a high percentage of statemented pupils can have a massive impact on other pupils and the whole workforce".
Councillors are to meet soon to discuss the report's findings.
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