The Oregon state Title I office has developed two needs assessment guidebooks to assist districts in complying with Title I needs assessment regulations. The first guidebook was developed in 1974. Following its dissemination, needs assessment procedures in Title I districts were closely monitored for compliance with the regulations, and it was apparent that it had not had a significant impact. A second guidebook was developed in 1981. It was written to update the process in accordance with new regulations, reaffirm to districts the necessity to conduct a needs assessment, and improve some of the shoddy practices which recent monitoring and auditing reports had cited. Interviews with local district staff indicated that the new guidebook was an improvement over the first version. It has stimulated an increase in reliance on objective sources of information and has resulted in a slight decrease in the amount and variety of survey approaches. Several problems with needs assessment utilization were identified: districts already feel constrained to provide basic skills programs; and needs assessment is more important when a district faces a budget decrease, and less important when program funding is static. (BW)