Guidelines for developing an ideal statewide educational assessment system are presented as one response to the redesign of the National Assessment of Educational Progress (NAEP). Emphasis is on the contribution NAEP can make to meet state needs. Core information which is useful to most states is discussed, assuming it will be directed toward policymakers and local educators. The state testing program should support the development and revision of educational policy, mobilize and sustain political support, and improve educational quality. This improvement may be accomplished by increasing the awareness of objectives, setting performance standards, providing incentives, and focusing accreditation procedures on quality. The testing program should focus on the school site level, include indicators in addition to academic achievement, rely on multiple measures, evolve over time, and focus on changes over time. The key components of useful assessment systems are annual school data profiles and a set of quality indicators. Suggested indicators which reflect long-term goals and effective schooling are listed. Public opinion, data collection, and state-by-state comparisons are also briefly discussed. (GDC)