This paper examines some of the negative consequences that have occurred in school districts attempting to comply with state legislation in regard to competency testing. It analyzes four definitions of competency assessments for elementary schools and then lists several possible results of a hasty response to competency testing mandates. The paper concludes that competency based education is a movement that may provide many worthwhile outcomes if sufficient time and resources are devoted to developing definitions that are commonly understood and valued by educators and society. In addition, the paper says, it is essential that such definitions are carefully articulated with the goals of education. (Author/LD)