The problem of setting standards has always been an issue in the educational community. This paper offers an outline of one state's procedure for setting a passing score for a competency-based test in mathematics. The Maryland Functional Mathematics Test (MFMT) becomes a graduation prerequisite for the graduating class of 1987. The procedures used for gathering information for standard setting are very similar to the procedures developed by Richard Jaeger. The standard setting procedures were designed to meet the two key criteria of maximum participation and multiple types of information. This political-judgmental approach allowed teachers, citizens, administrators, students and parents in the State of Maryland to offer a recommendation on the passing score. Sets of recommended performance standards for the MFMT were secured from 4,729 individuals with only slight differences among the standards recommended. The summaries of their recommendations formed the basis for the decision making by the State Superintendent of Schools. (Author/PN)