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Rating scales based on teacher observation are the foundation of many kindergarten readiness assessments. This study was designed explore the role of context in readiness assessments through an evaluation of the influence of student- and school-level demographic variables on teacher ratings of students’ skills at the start of kindergarten in a hierarchical linear modeling (HLM) context. The research findings suggest that context influences teacher judgment: while student demographics tend to have a negative association with teacher ratings at the student level, there was a positive association with the aggregate demographics at the school level.