Beginning with three anecdotes that illustrate problems with current assessment practices in English-as-a-Second-Language (ESL)/literacy programs, this paper reports a study that involved feedback from both programs and their funders. Literature is cited to show the opposing positions of proponents of standardized tests and those who search for objective mastery of discrete skills. Program representatives, funders, and students in Massachusetts and Rhode Island were surveyed about initial assessment procedures, placement, student involvement, and final assessment. State funders cited pressure from federal funding sources and state legislators in determining acceptable outcomes and the need for objectivity. Suggestions are offered for short- and long-term changes in the field of adult education, teacher education, building a knowledge base, initial and periodic assessments, use of models, oral assessment, and documenting progress. Contains 35 references. (Adjunct ERIC Clearinghouse on Literacy Education) (LB)