Current evaluation activities in the New Jersey school system are surveyed, and recommendations for future evaluation efforts are made. The current activities and future developments of school (or school district), statewide, and project (or program) evaluation are discussed individually. The following program objectives are suggested: to raise the number of trained education evaluators, to strengthen evaluation capability at each administrative level, to install satisfactory evaluation instruments, to administer instruments which evaluate pupil performance in relation to local and State goals, to expand district evaluation so that all schools are evaluated on a cyclical basis, to evaluate school districts for Bateman incentive aid qualification, to expand evaluation so that all projects financed through the Department are evaluated on a cyclical basis; and to increase expenditures for evaluation activities. Strengths and weaknesses of several program alternatives are discussed. Recommendations for short-range action are made concerning school district, statewide, and project evaluation, and recommendations for long-range action are made concerning needs assessment, management information system, cost analysis, instruction, and department task analysis. Additional questions for consideration are listed. An analysis of costs and an overview of an ETS survey of State testing programs are presented in appendices. (KM)