This document contains testimony, prepared statements, letters, and supplemental materials submitted during two days of hearings held in September, 1977. Under consideration was a bill to amend the Elementary and Secondary Education Act of 1965 to require state educational agencies to establish basic standards of educational proficiency applicable to secondary school students. Admiral H. G. Rickover expressed strong beliefs that the educational system is falling behind the needs of society. The president of Miami University at Oxford, Ohio, Dr. Phillip Shriver, testified that many entering freshmen are not prepared for college level work. The second day of testimony, Representative Ronald Mottl announced that he planned to introduce a substitute bill that would allow local systems to initiate minimum competency testing on a voluntary basis. Further testimony was presented favoring the federal government helping states establish standards but maintaining local control. Dr. Mary Berry, Assistant Secretary for Education of HEW, discussed issues of problem definition and development of national educational standards. Mr. John R. Andrisek, superintendent of Berea City Schools in Ohio, described their minimum competencies program. Mrs. Carolyn Warner, superintendent of public instruction in Arizona, described Arizona's continuous uniform evaluation system. Mr. Barry Beal, supervisor, department of development and evaluation, Denver Public Schools, described the Denver experience with minimum competency examinations. (MLF)