This report describes what schools and educators across Kentucky are doing to implement school reform in performance assessment based on the Kentucky Education Reform Act of 1990 (KERA). It provides research-based suggestions about how implementation of programs can be enhanced and how the benefits of reform increased for the Kentucky youth. Thirty-two schools from around the state were randomly selected to participate; they included two elementary schools, one middle school, and one high school from each region of the State. All teachers from the disciplines of language arts, mathematics, science, and social studies completed a performance assessment survey; six teachers from each school were randomly selected for personal interviews using the Performance Assessment Component Configuration (PACC) Map. A total of 500 surveys were analyzed. It was concluded that the extent to which performance assessment is occurring in the classrooms of the teachers selected varied considerably, both within and across schools, in terms of the understanding of what is required of a particular type of assessment and how it should be implemented. KERA support documents are being used by 7 out of 10 teachers surveyed as are multiple forms of assessment, including oral and written open-ended questions, performance events, portfolio assignments, skills tests, and conferencing. In addition, new teachers reported using more performance assessment in instruction than more experienced teachers. Appendices provide: a glossary of terms; the performance assessment component configuration map; performance assessment survey questionnaire; and 14 pages of tables displaying statistical results from the survey. (NAV)