This document is designed to assist school districts to implement the Massachusetts State Board of Education regulations requiring the setting of performance standards in basic skills at three grade levels. The appropriate procedures are described in the manual: (1) setting of basic skills objectives, at three grade levels; (2) the selection of tests or other measures that adequately cover the objectives; (3) the setting of a minimum acceptable score on each test or measure; and (4) the reporting of the number and characteristics (sex, race, etc.) of those students achieving below the local standard. Information is appended on tests currently available for assessing basic skills development at the high school level and general achievement test series, as well as on holistic scoring. (Author/CTM)