A review of procedures used to assess the educational needs of offenders in Florida's correctional institutions is presented in this report, along with recommendations for change. First, the report draws from a 1982 study of the state correctional system, presenting findings regarding the educational needs of youthful offenders, assessment processes, and tests used; and recommendations in the areas of incentives, classification and assignment, placement, and special education needs. Next, a summary of the testimony of public correctional personnel on inmate testing and education is presented. Then, reflections are provided on inmate diagnostic testing, which include a discussion of the purpose of diagnostic tests, an assessment of tests used, and a collection of observations and insights resulting from visitations by the State Advisory Council on Correctional Education to Florida's 26 major state correctional institutions. Finally, a series of recommendations is presented based on currently available testing instruments and a proposed testing framework. Appendices include sections from the statewide study of the correctional system dealing with assessment; a description of the tests used in the educational evaluation of inmates; and an evaluation instrument for assessing correctional education activities. (HB)