The procedures projected to be used in the spring and summer of 1982 to establish passing standards for the Maryland Functional Mathematics Test are described. The development of the test as a prerequisite for high school graduation to be implemented in 1987 is described. The maximum involvement of diverse constituencies and multiple informed judgments by the Maryland State Board of Education are requirements in the procedures for test item-based judgments, test specification-based judgments, and use of student performance data by standard-setters. The information gathering plan provides for sessions on item-based judgments with selected participants for school districts using an information pooling system in a prepared script to insure administrative consistency. Teachers, parents and students will be sampled by mail with a test description and domain item samples to develop specification-based judgments. During the fall of 1982 a cut-score validity study of ninth grade tests will be conducted. Multiple recommended cut scores will be used in making a decision and a Board of Education bylaw on performance standards. (CM)