State Education Secretary Gerald Zahorchak has decided to stop the development of the Keystone Exams "to allow the emerging consensus to develop."

Dr. Zahorchak sent a letter to the chairs of the state House and Senate education committees saying that the department will not spend money to develop the controversial graduation competency exams at this time.

"Over the past few months, we have had countless discussions and hearings on this matter, and I remain committed to a collaborative process that will result in substantial and positive impact for Pennsylvania's children," Dr. Zahorchak wrote in a letter dated Friday.

"Therefore, under the current circumstance and to allow the emerging consensus to develop, we will not spend funds for state-mandated graduation test development under the Data Recognition Corp. contract. We intend to revisit this issue when final form regulations, or the consensus we all hope for, is in place," he wrote.

The Legislature last year placed a moratorium on the state Board of Education, preventing it from advancing regulations until after the end of this month.

Some legislators were incensed when the state Department of Education last month signed a seven-year, $201-million contract with Data Recognition Corp. to develop the exams as well as a model curriculum and tools to help diagnose student learning needs. At the time, the department said the exams would be voluntary and would be a resource to school districts.

The department will continue spending money toward developing the model curriculum and the diagnostic tools.

Last week, Joseph Torsella, chairman of the state Board of Education, said he is working to make sure legislators get an opportunity to provide meaningful input before the board considers any revised proposal.

Under the proposal that had been under consideration, students would have to pass tests in six of 10 courses to graduate.