Employers, postsecondary institutions, and civic leaders are urging greater focus on 21st century skills essential for college, career, and civic success: problem solving, interpersonal skills, and collaboration, among others. In response to these demands, states across the country are working to realign policies--on learning standards, assessments, and human capital strategies--to set a new course for their state education systems. Many states are reconsidering their assessment strategies and asking whether existing assessments are designed to be the barometer, resource, and engine for learning necessary to support the new demands on students. To address gaps in existing assessments, many states are considering the role of performance assessments--assessments that require students to craft solutions to problems by constructing an answer, producing a product, or performing an activity rather than selecting from a list of multiple-choice answers--within their statewide assessment strategies. By requiring students to complete multifaceted tasks, these assessments can better support 21st century learning. This report is intended to familiarize state boards of education with performance assessments and help state board members and other policymakers address some of the thorniest issues around these assessments: purpose, sustainability, reliability, accountability, policy alignment, equity, professional practice, and implementation. The report ends with a set of discussion questions so that each state can begin to analyze barriers and opportunities toward effective implementation of these assessments.