A discussion of how well freshmen students are performing at Arizona's three universities, the relationship of high school class standing to performance, and the resulting need to change admission standards is presented as one of the working papers in the final report of the Arizona Board of Regents' Task Force on Excellence, Efficiency and Competitiveness. Topics considered include: current admission standards at Arizona universities; analysis of first-time resident freshmen; origin of first-time freshmen students at the universities; high school class standing of the 1986-87 resident freshman class; students from high schools differing in average basic skill level; identifying at-risk students; need for more comprehensive admission requirements; and need to assess the impact of admission standards implemented in 1987-88. Three conclusions are: attempts to improve the quality of the student body are not rewarded by the current funding system; students from lower score high schools are at greater risk; and efficiency at the universities would probably be increased by raising admission standards for resident students. Recommendations include that: (1) universities should assess the impact of admission standards implemented in 1987-88 on minority enrollment and student success; and (2) university admission policies should be widely distributed to potential participants in higher education. An appendix shows the Arizona public high schools in which students score highest and lowest on standardized examinations of basic skills. Contains 7 references, 3 figures, and 7 tables. (SM)