Abstract: Two concerns related to
setting performance standards on educational assessments are discussed. First,
criteria for a standard-setting process from the point of view of a
standard-setting sponsor, called here “institutional criteria,” are developed
using a state department of education as an example. Four institutional
criteria are proposed:(a) consistency with policy
goals, (b) legal defensibility, (c) generation of assets for support, and (d)
efficiency. Some steps sponsors may take toward meeting these criteria are
introduced by reviewing, and in some cases elaborating on, Hambleton’s
(2001) 20 questions from the perspective of the 4 criteria. Second, the concept
of vertical moderation of performance standards is reviewed, and considerations
that can lead to different choices for moderation of standards are explored.
Realistic state data are used to illustrate some of these choices. How
moderated standards may be consistent with the 4 institutional criteria is
discussed.