Over a two-year period beginning in March 2004, community colleges in Maryland developed a revised set of accountability indicators for a state-mandated Performance Accountability Report first required by a 1988 statute. A major innovation was a new model for assessing student degree progress. This article explains the development and components of this new degree progress model and examines how three sets of environmental factors--service area characteristics, institutional characteristics, and student body characteristics--correlate with graduation-transfer rates for sixteen Maryland community colleges. The analysis is exploratory with several methodological limitations, but is also suggestive of how environmental factors influence student outcomes. The article concludes with a comparison of actual graduation-transfer rates with expected rates following the framework advocated by Astin. (Contains 9 tables.)