This brief policy paper outlines considerations that school district personnel should address in determining the inclusion of students with disabilities in state and district testing and the use of alternate assessment for certain students with disabilities. It notes that the decision to include or exclude a student from state and district testing should be made by the Individual Educational Plan team based on guidelines such as: (1) the student's demonstrated cognitive ability prevents him/her from completing the required coursework and achieving state standards; (2) the student requires extensive direct instruction to accomplish the application of basic life skills and competencies; and (3) the student's inability to complete the required coursework is not due to excessive or extended absences or the result of social, cultural, or economic differences. Guidelines for determining appropriate accommodations include that such accommodations should facilitate an accurate demonstration of what the student knows and can do but should not provide the student with an unfair advantage or interfere with the validity of the test. Guidelines for accommodations in scheduling, setting, presentation, and responding are also offered. (DB)