Extensive public concern about the deficiency in basic skills confirmed by a decline in standardized test scores and widespread implementation of a variety of state and local improvement programs indicates an urgent need for national attention to this timely issue. However, a federal testing program or federally-imposed performance standards are neither necessary or desirable. Federally sponsored tests are not necessary because there are already a number of tests in widespread use; furthermore, cultural bias is a false issue regarding most existing tests and is not a valid argument either for or against a national test. The federal government should instead support a decentralized effort by developing models of what can be done and how, to avoid redundancy in state and local efforts. Specifics include: defining basic skills, setting standards, test selection and reporting results, program development, and teacher training. The government should also take initiative in providing test comparability information, establishing a clearinghouse on basic skills activities and designing a system to monitor progress achieving basic skills at a minimum competency level is only a starting point--the goal of our educational system is excellence. A status report on basic skills activities at the federal, state and local level, and sample basic skills test items are appended. (CP)