This handbook presents the policies and procedures of the performance evaluation system for the State Education Grant (SEG). (The SEG is that 8 percent of Title II-A of the Job Training Partnership Act (JTPA) designated for administration by the state education agency.) Chapter I contains the general requirements of the SEG performance evaluation system. Chapter II describes the SEG performance standard system for Program Year 1984. Chapter III discusses the performance standard system for Program Year 1985 and subsequent years. This system for adjustment of performance rates known as the "JTPA Regression Model" is addressed in detail, because it will be used in future years unless amended. Each of the seven standards is provided, along with the national departure point or rate, the influencing factors, national average rates for each factor, and the weight value for each factor. Appendixes include Program Year 1984 Title II-A Adult and Youth and Title III Adjusted Performance Standards for 27 service delivery areas in Pennsylvania, the point rating system, Program Year 1985 SEG performance standards to be used for planning purposes, and worksheets that training agencies may use to determine the status of adjustment to performance standards based on actual factors of the program and performance levels of the program. (YLB)