Please note that CRESST reports were called "CSE Reports" or "CSE Technical Reports" prior to CRESST report 723.
Measuring school and classroom environments has become central in a nation-wide effort to develop comprehensive programs that measure teacher quality and teacher effectiveness. Formulating successful programs necessitates accurate and reliable methods for measuring these environmental variables. This paper uses a generalizability theory framework to compare and contrast four widely used approaches for accounting for measurement error in school and classroom level variables. Then, this paper uses two empirical examples to demonstrate how each of these approaches lead to different conclusions about measurement precision, and influences the conclusions about relationships between the environmental variables and policy-relevant outcomes. Additionally, this paper shows how one widely used model may misrepresent the structure of the data in many survey administration scenarios.