A study was undertaken to describe assessment activities of four school districts in Maryland (Washington, Cecil, Montgomery, and Charles Counties) designed to parallel a state-mandated competency-testing program required for high school graduation and to report uses of scores and positive and negative impacts from assessment activities. The context of the study was the Maryland Functional Testing Program, which covers reading, writing, citizenship skills, and mathematics. The Montgomery County school system also administered a computerized adaptive functional mathematics assessment test via microcomputer. Data were collected via telephone surveys of testing directors and impact analysis of students who took the tests. Results indicate that: (1) teachers were enthusiastic about participating in item development and essay scoring; (2) increased emphasis on basic skills objectives, to the detriment of other learning outcomes, was exacerbated by parallel assessments; and (3) further consideration should be given to state involvement in the development and administration of competency tests. Five tables are included. (TJH)