The primary goal of the Kentucky Needs Assessment Project is to develop methods of sampling and annually assessing the extent of learners' needs in Kentucky and to stimulate educational programming based on the reduction of learners' needs. The completed Phase I of the project was devoted to an identification of learners' needs and a determination of the criticality of those needs. Activities planned for Phase II are discussed in this report. These activities are aimed at the development of a method (test instruments and procedures) for making an annual assessment of the progress of schools in alleviating the specific learning needs of students. Criterion measures and the parallel assessment instruments will be restricted to "Learning Skills" in reading and mathematics in grades 4, 7, and 11. An attachment to the report provides Suggested Criteria for Determining the Quality of an Educational Needs Assessment Strategy. These criteria are outlined as to organizational strategy and operational strategy. Other attachments are map of Kentucky showing the distribution of sampling pilot school districts by regions as of December 18, 1970, as well as a tentative calendar of activities. (DB)