Needss asessment is here to stay as shools wishing to apply for grants under the competitive titles of the Elementary and Secondary Education Act (ESEA), must now justify their requests. However, quality assessment data cannot be obtained in the majority of school districts nationally without federal or state budgetary allocations for Local Education Agencies (LEA) to conduct systematic needs assessments. State guidelines presently preclude funding of these locally determined priority needs in the affective or secondary areas with ESEA Title I money. There is an obvious credibility gap here. On one hand, there is the demand for needs assessment. On the other hand, there is the powerful external influence on local perceptions of needs resulting from requirements for programs under categorical federal and state funding. Because of legislation, special funding, and other external pressures, schools may find it difficult to take a new look at their goals and their programs. Since it is obvious that federal and state agencies will continue to demand needs assessments, these agencies must also be realistic enough to provide the necessary assistance to insure that locally determined priority needs will be met. Changes in the ESEA Title I statute, guidelines, and funding must be made in order to achieve these ends. (Author/MV)