Pennsylvania's "Testing for Essential Learning and Literacy Skills" (TELLS) program was instituted during the 1984-85 school year, to identify reading and mathematics problems early in a student's school career. This document describes the intent and legislation behind TELLS, the implementation of the test, population tested, properties of the test, results of the test for noncategorical students and total groups, and analyses of results for each objective. Committees of Pennsylvania reading and mathematics professionals selected objectives to serve as the basis for the tests and chose Charles E. Merrill Publishing Company to provide test items meeting those objectives. The tests were administered in October 1984 to grades 3, 5, and 8. Students falling at or below cut scores became eligible for state-funded remedial instruction. About 35 percent of public school students and 24 percent of nonpublic students became eligible for at least one program. For certain objectives, the performance of above-cut students differed greatly from that of below-cut student. For grade 3 the Multiple Meaning Words objective marked the greatest difference on the reading test; for grades 5 and 8, the Inferential and Critical Comprehension was most indicative. Appendices include: (1) selected sections from the State Board regulations; (2) applicable sections of Act 93; (3) TELLS objectives; and (4) samples of reports. (LMO)