This report is one in a series of ten documents examining the experiences of New York State in the transition from traditional to competency based teacher education. This volume presents data on institutional perceptions of problems relating to program development. Institutions of higher education and the State Education Department perceptions are reported and compared. An additional dimension of the report is an analysis of the State Education Department's proposal review process. Background, statement of the problem, and purpose of the research are discussed in an introductory section. The body of data is presented in three phases: Phase I--elements of program development; Phase II--State Education Department program review process and perceptions of elements of program development; and Phase III--comparison of these perceptions. Instrumentation and correspondence are presented in the appendices. (MJB)