Alternative resources, which differentiate language differences from language disorders among bilingual children, are needed for assessment of culturally and linguistically diverse students. Standardized testing is especially troublesome when there are few testing substitutes and no translations in their language, which may incorrectly identify the students as having a disability. An ongoing investigation of culturally relevant assessment for bilingual American Indian children on the Navajo Reservation evolved into a collaborative model of student centered learning. This model provides a comprehensive, authentic, assessment process using multiple data resources. Data sources include, but are not limited to, the student, parents, teachers, counselors, school psychologists, and administrators. This educational community includes primary and secondary stakeholders in the physical, affective, cognitive, and communicative development of the student. In this model all educational stakeholders, including students, are trusted to provide culturally and linguistically relevant information in support of the assessment process. Portfolio assessment provides a more equitable analysis of the student's abilities and performance over time and in a variety of settings rather than traditional reliance on decontextualized data. "An interactive Model for American-Indian Educational Communities" is presented schematically, and "Recommendations for Portfolio Assessment Team Procedures" are included. (Contains 13 references.) (EMK)