A project to assist with improving test efficiency in local school districts and state agencies is described. The report describes and defines the term "item banking." Considerations in selecting, developing, or managing an item bank are discussed. Testing purposes considered suitable for item banking include student selection for special programs, certification of student competencies, general survey assessments, and diagnosis or monitoring individual student progress on instructional objectives. Resources which local districts, state agencies, and others might provide, and roles each agency might play, are discussed. The report is designed to provide the background and guidance needed to form decisions concerning whether and how to use item banking. (DWH)