Since 1988 the Vermont Department of Education has been developing an innovative statewide performance assessment program. In 1990, the RAND Corporation began evaluating the Vermont assessment program, focusing specifically on the portfolio component of its assessment system. This report presents results from the evaluation in the 1992-93 school year. It presents results of interviews of principals in a random stratified sample of nearly 80 Vermont schools, questionnaires completed by mathematics teachers statewide, and analyses of the reliability of portfolio scores. Questionnaires indicate that teachers perceive the program as causing substantial change in instruction that are consistent with program goals. Teachers also indicate that the program imposes substantial burdens on them, and that variations in program implementation are sufficient to jeopardize comparative interpretations of test results. In 1993 there was improvement in score reliability in mathematics but not in writing, although reliability remained too low for many uses. Overall, 1993 results show appreciable but inconsistent progress. Twenty-six tables present evaluation findings. Appendixes contain an additional seven tables of correlations and a discussion of scores. (Contains 8 references.) (SLD)