This booklet describes the test development process used to upgrade New Jersey's basic skills competency test, the High School Proficiency Test (HSPT). Ninth-grade students in New Jersey public schools must pass this test of reading, writing, and mathematics skills in order to receive a state endorsed high school diploma. Test development committees composed of members representing elementary, secondary, and higher education, as well as the business community, parents, and the New Jersey State Department of Education were formed in the areas of reading, writing, and mathematics. The procedures they followed included: (1) identification of skills to be tested in reading, writing, and mathematics; (2) selection of a contractor capable of writing the test items, producing and printing the booklets, scoring the tests, and distributing the test results to local school districts; (3) field testing items to gather empirical evidence of their validity and reliability; and (4) final selection of test items based on field testing results. This test development process is repeated annually, adding new items for testing the same skills. The interval between initial writing of test items to production and distribution of tests is ten months. Appendices include lists of committee members and extensive skill lists. (KSA)