Evaluations of compensatory educational programs reveal that Black and Chicano school children do relatively less well the longer they remain in school. This investigation sought to determine the extent to which this regression is attributable to contemporary evaluation methodology. Analysis was conducted of the impact of standardized achievement tests on a population of low SES Black and Chicano fifth grade students. It was hypothesized that the effect of frequent testing would be that of depressing achievement test scores. Analysis determined that the typical student dropped an average of two stanines in reading achievement as a result of this testing. Additionally, this study found that: (1) Black and Chicano children learn more than standardized tests show; (2) Testing is a high stress activity; and (3) Testing seriously impairs the teacher-student relationship. Research was conducted through structured classroom observations and interviews and interval analysis of test scores. It is concluded that standardized testing produces primary and secondary reactive effects which are destructive to self-confidence, achievement, and the academic ability of minority, low-income children. (Author/CK)