The Office of Educational Accountability has compiled and analyzed indicators of progress in developing a statewide accountability system in Minnesota. This report focuses on the state as a whole, not on specific schools or districts. Chapter 1 is an introduction to Minnesota's accountability history and current concerns. Chapter 2 examines educational accountability at the state and federal levels. Quality-control measures to ensure accuracy of test results are emphasized, especially in the aftermath of a scoring error found in a Basic Standards Test in mathematics. Allowing parents and students to review student test results is also recommended. Chapter 3 describes the students and such teaching resources as funding and staff. Chapter 4 discusses course work, attendance rates, grade promotion, and graduation rates. Chapter 5 covers student achievement in statewide tests. Chapter 6 offers major conclusions and/or recommendations in the areas of per-pupil expenditure, teacher salaries, ACT scores of high school seniors, ethnic differences in attendance and promotion rates, 4-year graduation rates, statewide test scores in reading and math, social promotion rates, and enrollment changes. A review of expectations for school performance standards established by other states, to comply with federal Title I requirements, is provided in chapter 2. Appendix A is a glossary. Appendix B gives student scores on the Minnesota Comprehensive Assessments and Basic Standards Tests. (Contains 21 tables and 37 figures.) (RKJ)