Progress made to date in efforts to lay the groundwork for establishing meaningful and on-going procedures for the assessment of the performance of educational systems in New York is reported. The need for educational performance indicators is that indicators would provide a series of measures to show how well educational systems are performing, that indicators would identify specific areas in which specific school systems need specific help, and that indicators could clarify what school are actually doing for and to different kinds of children. Four factors in measuring the performance of an educational system are input, educational process, surrounding conditions, and output. These factors constitute what is called the "student-change model" of an educational system. To reduce the number of indices, a factor analysis of the measures of student output characteristics should be carried out. Factor analyses would also be employed to reduce the number of measures of educational process, the measures of "hard-to-change" surrounding conditions, and the measures of "modifiable" surrounding conditions. The procedure proposed for deriving performance indicators for a given set of schools begins with a series of regression analyses involving as large a sample of school systems as appears feasible. A proposed pilot study to provide information crucial to the evaluation of underlying assumptions is discussed, and long-range plans are described. Appendix A to the report discusses factor analyses, and Appendix B concerns regression analyses and conversion of deviations to performance indices. (DB)