New Jersey was one of the first states to change the scope and rigor of its statewide competency test that students must pass to earn a high school diploma. Beginning in 1982, students had to pass a ninth grade minimum competency test. As of the 1985-86 school year, students have to pass a more rigorous ninth grade test to graduate. The purpose of this paper is to examine the program, especially its impact on education in the state. The paper (a) explains the rationale behind the decisions to change the statewide competency program; (b) discusses the key operational decisions made about the program; (c) evaluates the test results for the first 3 years that the program has been administered; and (d) assesses the impact of the program on curriculum, high school graduation, state compensatory education funding, and district certification.