While many black citizens support the concept of competency-based standards, it is understandable that questions are being raised about the impact of competency-based education (CBE) on black students and on goals for achieving educational equity. It must be determined whether CBE programs are egalitarian or obstructions to educational equity. This research provides information to assist citizens in making this determination. The report discusses alternative views of educational equity, including definitions that emphasize educational inputs (such as money), processes (such as teaching and organizational influences), and outcomes (such as achievement levels and job success). A CBE program based on equity considerations must include adequate human, physical, and economic resources that are organized and allocated according to equity goals and objectives and that lead to students' maximizing their academic performance and participating in social institutions. A framework for monitoring the inputs, processes, and outcomes in a CBE program is provided. (Author/IRT)