Recognizing the lack of public confidence in the schools, public officials and educators should discuss the proper use and limitations of competency testing and the implementation of national tests. Competency tests should be used for diagnosis, for certifying that students possess basic skills, and for public awareness. They should not be the sole criterion for assessing competency; furthermore, there are apsects of learning beyond academic achievement which tests do not measure, such as maturity, self-discipline, honesty and judgment. National tests are strongly discouraged for these reasons: they lack local commitment; no test is right for every school; there is no one definition for minimal competency; and they would discourage local experimentation. While each state and school district should develop a competency program, the federal government should and will take a limited role by supporting the following ventures: (1) The National Academy of Sciences will conduct a major test evaluation and usage study; (2) The Education Commission of the States and similar organizations will run workshops and provide technical assistance; (3) The National Academy of Education will establish an advisory Committee on Testing and Basic Skills; (4) The Office of Education's Project on Fundamental Skills will coordinate 13 different federal programs dealing with basic skills; (5) The National Institute of Education will study student failure; (6) Educational television and video-disk Programs will be developed; (7) The critical role of parents in educating their children will be strengthened. Finally, public officials and educators should strengthen their commitment to fairness in admitting minorities to professional schools. (CF)