During the spring of 1980, Texas tested all of its ninth graders for the first time as part of a legislatively-mandated competency program. This forced all Texas districts which already had established programs to decide whether to drop, modify, or retain them. The political, economic, and practical information which was important within the Austin Independent School District (AISD) in making this decision is presented, along with a comparison of the students considered competent under both systems. Austin's decision, which involved raising the State standard and incorporating the Texas Assessment of Basic Skills (TABS) test into the AISD's own system, is presented. The AISD system included achieving a raw score while in grades 9-12 equivalent to the national median performance by grade 8 students on the annual administration of the Sequential Tests of Educational Progress (STEP). The practical, economic, and political implications of this decision are examined. (Author/RL)