Many people believe that a lack of clear goals has limited the quality of education in America, where local school districts have traditionally been responsible for setting educational standards. Working in isolation, schools have failed to reach consensus on goals and standards, and teachers are hard-pressed to motivate students to achieve. The situation can alienate students, faculty, and the community, while shifting economic conditions demand a highly educated work force. In response, government officials are joining forces locally, regionally, and nationally to seek a common definition of educational standards for the 21st century. Two other factors are fueling the current push for standards in Oregon: (1) passage of a 1990 property tax limitation initiative that shifted school funding responsibility from local property taxes to state government; and (2) decreased numbers of high-paying blue-collar jobs, due to declining wood products and other resource extraction industries. Chapter 1 briefly reviews educational standards development in the United States. Chapter 2 articulates some complex considerations arising during discussions about "world-class" standards. Chapter 3 defines a performance-based system to address these issues. Chapter 4 describes approaches to developing performance-based standards, and chapter 5 examines implementation actors and challenges. Included are 45 references and 16 interview contacts. (MLH)