The purpose of this research was to compare the performance of mildly handicapped and nonhandicapped students on a test designed to measure functionalliteracy in math and communication skills. Random Samples of 300 students w m drawn from performance data available for all students participating in a statewide assessment program. Separate i&m scores as well as percentages of mastery on specific skills and sfandards were analyzed. krformance of students with individual handicap ping conditions on the hm standards (communication and mathematics) was compared across exceptional student groups and with the performance of nonhandicapped peers. A high percentage (8ZOVo) of nonhandicapped students demonstrated mastery levels of performance on the communication and mathematics items. Students classified as emotionally handicapped (EH) and learning disabled (LD) achieved mastery within 5% of one another on the communication and mathematics items and performance of students classified as educably mentally handicapped (EMH) was far below that of other exceptional students. In general, scores were highest in communication skills involving writing (i.e., being able to complete money orders, checks, and common brms) and in mathematics skills involving the use of equivalent amounts of change and curmncy. in rne m i a -~~/ u s , minimum comperency iesrrng iegisiarion was irirusi uri public schools to ensure that all high school graduates attained a given level of literacy (Klein, 1984). The enthusiasm for competency tests stemmed from a belief that the testing of essential skills and competencies would help raise academic standards and increase educational achievement (Haney & Madaus, 1978). Enoch (1978) put it this way: "The program was not set up as This research was supported in part byagrant (No. 6008402050) from the United sttdes Department of Education, Office of Special Education Programs; the opinions represented are those of the authors and should not be construed as an agency perspective.