A study was conducted to determine criteria for use in evaluating Indiana local school districts' delivery of programs and services in vocational and technical education and steps for the use of these criteria. Data were gathered by a review of the literature from 1983-1989 and telephone interviews with state agency personnel, concentrating on sets of criteria and their organizers and characteristics that are being used by states that have gained national recognition, that have been recommended by recognized experts in the field, and that are required by federal legislation. Six states were chosen for study: Colorado, Florida, Georgia, Illinois, North Carolina, and Wisconsin. Findings indicate that the major issue facing state-level decision makers is the lack of agreement on a clear definition of what vocational education should be. There is also evidence that policy-makers, advisory groups, and researchers consider effective evaluation to be a top priority for vocational education research and development activities. In addition, grassroots efforts are underway to find ways to assist practitioners in using criterion-referenced occupational tests for the measurement of student progress, with those criteria being directly linked to analyses of on-the-job tasks. Additional trends include the evaluation of student progress on both broad transferable skills and task specific skills, the use of individualized educational plans, and locally directed evaluation. (The four tables in this report show the results of an analysis of these findings. They display the characteristics of state evaluation systems, the categories of state criteria, 28 recommended sets of criteria, and recommended steps for criteria use. Seven appendices include a 133-item bibliography; a list of 105 selected references; a list of 18 resources persons with addresses; consultant vitae; project personnel, activities, and timeline; work session materials packet; and recommended program criteria. A supplemental report includes recommendations for the evaluation of vocational and technical education for higher education and employment and training programs.) (KC)