A comprehensive, needs-based portfolio assessment system was developed for use with adult basic education (ABE)/General Educational Development (GED) students at an adult education and job training center in Lewistown, Pennsylvania. Consultation meetings were held with ABE/GED instructors, students, administrators, and counselors to identify relevant needs-based competencies/skills and develop a portfolio format. Other portfolio assessment structures were also researched. It was decided that the portfolio assessment system would consist of a checklist system of the English/writing and mathematics skills, aptitudes, and competencies that students were expected to develop, and selected samples of students' work. Students' skills were further documented through periodic standardized testing that was cross-referenced to the checklists. The portfolio assessment system was used with a total of 35 students enrolled in a GED class, an ABE class, and three independent student ABE/GED classes. Documented increases in student knowledge were readily available through the system of checklists cross-referenced with curriculum-based assessment. The students reported enjoying using the portfolios because they could readily see the results of their learning. (Also included is a sample GED portfolio containing the following forms: skills checklists; case manager review; independent study plan; assessment summary; and competency measures.) Contains 12 references. (MN)