HARRISBURG -- Sen. Jane Orie has proposed legislation to stop the Rendell administration from proceeding with a $201 million, seven-year contract for Keystone Exams, new graduation competency assessments for high school students.

The McCandless Republican expects Senate Bill 281 to be voted on in early June by the Senate Education Committee, and then it would go on to the full Senate, which is controlled by Republicans.

The bill says that "any statewide requirements for high school graduation from a public school (in Pennsylvania) ... shall be established only by an act of the General Assembly."

That would stop the Department of Education from proceeding with its current plans for a seven-year contract with Data Recognition Corp. of Minnesota to develop the tests in algebra, science, social studies and other subjects.

Ms. Orie said that with the state facing a budget deficit of up to $3 billion, now isn't the time to proceed with a costly new graduation exam that has "unproven outcomes." She and Senate Republican leaders Joe Scarnati of Jefferson and Dominic Pileggi of Delaware wrote to Gov. Ed Rendell today saying there were "stunned" to learn about the $201 million contract and urging him to "withdraw from this contract before further educational and fiscal damages accrue," but that doesn't seem likely.

The Education Department said the new exams are needed to make sure high school students have thoroughly learned each subject by the time they graduate, and so they don't have to take remedial courses in basic subjects when they get to college.

The Legislature still has to decide whether to appropriate about $30 million for the test development in the fiscal 2009-10 budget, which takes effect July 1.