State educational policy-makers are showing increasing interest in using statewide educational assessment and evaluation programs (1) to evaluate student thinking skills and affective learning as well as traditional academic achievement, (2) to evaluate teachers at all stages of their careers, and (3) to assess the impact of school reform efforts. Whether actions to implement these evaluation program elements have been taken or whether they are currently being planned, there are policy issues involved that should be reviewed. One set of issues concerns identification of the purposes of the evaluation effort--an identification necessary if appropriate methods and instruments are to be selected. Establishing legitimate and informative criteria for making evaluative judgments is a second important policy concern. Policies relating to the appropriate extent of testing--clarifying how much is too much and how much not enough--are also required. The needs of governmental bodies for different information can lead to conflicts that may be resolved by adopting policies that recognize the legitimate interests of all agencies. The social implications of evaluation programs must also be considered and policies devised to control program effects. Effective policy-making can enhance the prospects for developing programs that provide data for significant planning. (PGD)