The California Assessment Program (CAP) collects a wide range of achievement and demographic data to help local schools and districts improve their instructional programs. Tests in the areas of English/language arts, mathematics, history-social science and science designed by California educators are administered to students in grades 3, 6, 8, and 12 annually. The introductory chapter to this annual report gives background data and information regarding the CAP. Scholastic Aptitude Test results are also summarized. Chapter 2 contains demographic data revealing California's diversity in student population, including ethnic group, language fluency, and socioeconomic status. The number of various types of courses taken by twelfth graders is included along with the amount of time students spend watching television, reading for pleasure, doing homework, and working on writing assignments. The body of this report, as seen in chapters 3 through 6, contains information about the 1985-86 results for reading, written expression, mathematics, history-social science, and science. Statewide results showed improvement for all test scores for all grade levels and all content areas except two. The two declines occurred in grade eight history-social science and grade twelve reading. The observations and recommendations of teachers and local curriculum specialists appear in the content area chapters. (KSA)