To determine the concurrent validity of a standardized test and its usefulness to educators, reading ratings from the Iowa Tests of Basic Skills were compared to teacher ratings and independently administered placement test ratings. Two hundred one primary children, the majority of whom read one or more years below grade level, took the ITBS by a grade testing plan. Correlation analysis, analysis of variance, and examination of difference scores supported the conclusion of low concurrent validity for the standardized test with low-achieving readers' instructional reading levels. Out-of-grade testing was recommended for low-achieving primary children. (Author)