THE PURPOSES OF THE QUALITY MEASUREMENT PROJECT WERE TO DEVELOP TECHNIQUES FOR ASSESSING THE QUALITY OF EDUCATION PROVIDED BY A SCHOOL SYSTEM AND TO PUT INTO THE HANDS OF SCHOOL ADMINISTRATORS EFFECTIVE PROCEDURES FOR IDENTIFYING AREAS OF WHICH IMPROVEMENT MAY REASONABLY BE EXPECTED, GIVEN THEIR OWN LOCAL CONDITIONS. THIS STUDY SAMPLE CONSISTED OF 97 SCHOOL DISTRICTS REPRESENTATIVE OF THE 1,700 DISTRICTS IN NEW YORK STATE. SUPERINTENDENTS WERE ASKED TO IDENTIFY CRITICAL PROBLEMS WHICH HAVE ARISEN RECENTLY AND WHICH RELATE IN SOME WAY TO THE QUALITY OF THE SCHOOL. IN THE FIRST YEAR OF THE PROJECT, INFORMATION WAS SECURED ON INDIVIDUAL SYSTEMS, STAFF CHARACTERISTICS, LEVEL OF FINANCIAL SUPPORT, AND INFORMATION ABOUT SCHOOL PRACTICES IN THE PARTICIPATING SYSTEMS. THE PROJECT ACCUMULATED, FOR INDIVIDUAL PUPILS ACROSS THE SAMPLE OF SYSTEMS, DATA ON SOCIOECONOMIC STATUS, MEASURED IQ, AND ACHIEVEMENT IN A NUMBER OF SKILLS AREAS AT THREE DIFFERENT GRADE LEVELS. CONCLUSIONS WERE THAT EXPENDITURE IS POSITIVELY RELATED TO SCHOOL SYSTEMS EFFECTIVENESS. ADDITIONAL MONEY SPENT FOR INSTRUCTION GOES, IN PART, FOR THE EMPLOYMENT OF A BETTER PREPARED STAFF AND FOR SPECIAL EDUCATIONAL SERVICES. BETWEEN SYSTEMS WHICH ARE CLOSELY MATCHED, THE SYSTEM WHOSE TEACHERS ARE MORE SUBJECT ORIENTED WILL TEND TO PROMOTE HIGHER ACHIEVEMENT IN THE SKILL AREA. THE QUALITY MEASUREMENT PROJECT HAS OPENED UP A MAJOR FIELD FOR LONG-RANGE RESEARCH AND DEVELOPMENT. A BASIC FUND OF DATA ON SCHOOL SYSTEM INPUT, PROCESS, AND OUTCOMES HAS BEEN SECURED. THE DATA HAVE BEEN USED TO PROBE THE CRITICAL ISSUE IN QUALITY ASSESSMENT OF HOLDING THE FACTOR OF INPUT CONSTANT WHILE MEASURING OUTCOME. (GC)