Issues associated with minimum competency testing are discussed: the national, state, and local context for MCT program development; MCT's potential impact; the use and development of MCT programs; and reactions to the testing programs. Presently, the federal role is described as limited to providing information, research support, and technical information, although some government officials support national competency standards. Most activity has occurred at the state level, with the emphasis on integrating testing programs which combine earlier testing of basic skills with periodic assessment during high school. Local school districts are also active, as exemplified by the Basic Skills Assessment program. The basic skills of reading, writing and mathematics are the focus of most MCT programs. Both positive and negative impacts will be experienced by students, teachers, schools, administrators, school boards, parents, potential employers, and test developers. Guidelines are offered for appropriate and inappropriate test use and for selecting and scoring tests. For those who favor MCT, a cautious approach to program development is recommended, using an advisory group composed of community members and educators; instituting a pilot program; and studying the results before setting standards and operationalizing a program. (MH)