The reactions of local educators (teachers, principals, and central office personnel) to the initiation of statewide mandatory minimum competency tests and the effects of implementing these testing programs were studied. Variations among school districts within two states were considered. Items from a survey of individual educators were combined into scales measuring local system adjustments. Scales were used to study a "low stakes" state, where relatively minor consequences depended on student performance, and a "high stakes" state where graduation depended on passing the tests. The program had the greatest impact in the high stakes situation. For individual districts, a high stakes strategy had desirable consequences as long as the districts were not under too much pressure. District variations were also a result of the perceived political climate between the district and state department. Some positive results attending the state testing programs include better definition of curriculum, availability of additional information on students, and perception that students' skills increased. Data are summarized in charts in an appendix, and the survey questionnaire is also appended. (SLD)