Standards-based reform calls for the setting of challenging standards in academic subject areas as an important means of improving student achievement. In 1994, Congress passed the Goals 2000: Educate America Act, which enacted the education goals into law and provided resources for the development of standards and assessments. This report offers recommendations for the implementation of standards-based reform and outlines possible consequences for policy changes. It summarizes both the vision and intentions of standards-based reform and the arguments of its critics. Recommendations regarding the following elements in a system of standards and assessments are offered: content standards, performance standards, opportunity-to-learn standards, and assessments. The report advocates a cautious, "learn-as-you-go" approach to implementing standards-based education reform. Suggestions include: (1) conduct ongoing research on standards-based education; (2) establish a national or quasi-national organization to inform standards-based efforts across disciplines and states; and (3) address systemic inequities. A glossary of terms is included. (LMI)