School administrators in a small suburban school district in Southeastern Pennsylvania were concerned about grade inflation at the elementary and secondary levels. Specifically, they wanted to know if students in grades 5, 8, and 11 who scored at the basic or below basic performance level on the 2003-2004 Pennsylvania System of School Assessment (PSSA) received inflated end of semester grades in reading and mathematics. Data for this study were collected from the PSSA reading and mathematics assessments and the end of year report card grades for students in the 5th, 8th, and 11th grade during the 2003-2004 academic year. A total of 407 student records were examined. The researchers found no grade inflation for students in grade 5 for the combined sample of reading and math. However when the sample was split according to subject, the reading final grades were inflated. Grade inflation was also present for both grades 8 and 11 for the combined samples and for individual subjects (Reading and Math).