This report is designed to share the experiences of Oregon's Department of Education, thus far, with both the conceptual and actual use of indicators in assessing progress toward State level goals and objectives. The first chapter outlines the history of the study and briefly discusses the concept of indicators as used in the report. The report then presents Oregon's definitions of indicators and suggests criteria to be used in selecting indicators. The next discussion covers two ways in which Oregon will use indicators in statewide assessment. It also suggests modifications that other States might wish to make, and some difficulties that may be encountered. A subsequent chapter outlines the procedures used by Oregon to identify and inventory sources of indicators, and a final chapter reports on the uses being made of indicators by other State departments of education and also mentions some of the noneducational settings in which the concept has been used. Appendixes include a list of indicators actually identified for future use in Oregon, sample forms, a list of agencies contacted as potential sources of statistical data from which indicators could be developed, and selected references. (Author)