The North Carolina State Board of Education, as part of the Quality Assurance Program, initially established a computer proficiency requirement for diplomas issued to the Class of 2000. In October 1995, the Board made the requirement effective beginning with the graduating class of 2001. Students who were in grade eight for the 1996-97 school year and beyond are required to satisfy the computer proficiency requirement in order to receive a high school diploma. The requirement is based on the kindergarten through grade 8 competencies of the K-12 computer skills curriculum approved in July 1992 by the State Board of Education. These competencies are defined in the North Carolina "Standard Course of Study" (SCS). The goals of the requirement are to ensure that most students enter high school with sufficient computer skills and no student exits North Carolina high schools without sufficient computer skills. The multiple choice and performance test assesses: word processing; keyboarding; database use; spreadsheet use; telecomputing skills; societal issues; ethics; terms, operation, and care of computers; and use of computers in various curricular areas. The performance test consists of four parts: keyboarding techniques; word processing/editing; database use; and spreadsheet use. This document reports the performance of students in the class of 2001 as tenth graders, the class of 2002 as ninth graders, and the class of 2003 as eighth graders on the computer skills test. For the 1998-99 school year, 74.9% of students who took the tests met the requirement at the end of eighth grade. There were disparities in performance among subgroups. Hispanic (49.7%), Black (58.5%), and American Indian (60.1%) subgroups had lower percentages passing the proficiency requirement than Asian (72.8%), Multi-Racial (73.2%), and White (84%) subgroups. For the same school year, 76.6% of students who took the tests met the requirement by the end of ninth grade. Hispanic (50.7%), American Indian (62.1%), and Black (62.8%) subgroups had lower percentages passing the proficiency requirement than the Asian (70.1%), Multi-Racial (74.2%), and White (84.7%) subgroups. Findings for tenth grade revealed 80.8% of students taking the tests had met the requirements by the end of tenth grade. Hispanic (61.7%), Black (69.1%), and American Indian (69.1%) subgroups had lower percentages passing the requirement than the Multi-Racial (72.1%), Asian (72.8%), and White (87%) subgroups. Findings are highlighted in the following categories: 1998-99 student performance--comparison of 8th, 9th, and 10th grade performance; and student performance by ethnicity. Twenty-four tables and seven figures present findings. Sample questions and answers for the tests are included and a list of charter schools is appended. (AEF)