Minimal competency testing of students can be an effective tool for improving educational quality if applied appropriately with adequate safeguards. The failure of academic standards through grade inflation, a policy of social promotion rather than academic promotion, and weak curricula has reduced public confidence in education and encouraged legislative and judicial bodies to become involved in setting educational policy. Legislatures have backed efforts to develop and institute minimal competency testing. The courts have accepted such tests as graduation requirements, but only upon adequate notice. Educators have begun to adopt several measures to reestablish meaningful academic standards, including higher graduation and university admission requirements, competency-based education programs, and renewed emphasis on "basic" subject matter. Minimal competency testing can be a valuable addition to these measures provided it does not become the sole criterion for academic advancement or lead to teaching for the test. Competency tests cannot measure all aspects of education equally effectively, and should be used in combination with other methods. Programs for establishing and administering minimal competency testing should include due process safeguards, valid and reliable tests, and provisions for remediation and for staff development in diagnostic and remedial skills. Ten recommendations affecting use of minimal competency testing conclude the document. (PGD)