Case
Teacher confides intent to cheat on state wide testing

A friend and fellow teacher comes into your room after the school day is done. She complains about the necessity of state wide testing and her opinion on the subject of state wide standardized testing. She further elaborates on the unfairness of the testing as it relates to her as a teacher based on student performance. She confides that she intends to falsify students responses on the test and states "who's going to know?". This event happens before the tests have started and you have not seen her act on her intent only what her intent maybe. Should her intent be reported before the event can take place or wait until she commits the act of falsify student responses before reporting it?

Solution #1
I would absolutely contact administration right away. If she is given the opportunity to cheat, that would invalidate all of her students scores and possible all of the scores from that school which negatively impacts the students and other teachers.

I agree, I think that if someone is willing to cheat on a test as important at this, who knows what else they could falsely report. Its important to notify immediately.

Solution #2
Like many of the comments below, I would immediately contact administration.

This is the solution I would use.

Solution #3
You must unfortunately report this teacher to administration. Any attempt to persuade them not to may cause them to pretend that they agree with you, only to go behind your back later. Especially if they feel they are completely in right by doing this. Regardless of how unfair the state test is or isn't, attempting to change your students' scores can hurt them by making their test scores unrepresentative of their actual preparedness for the next level of education. There is another problem too: If this teacher is exposed and you are found out to have known beforehand what she was doing, then you will be seen as an accomplice by being complacent with what she is about to do.
Solution #4
I would contact administration

Definitely talk to administration.

Solution #5
Truthfully, she is right that the state test are unfair but teachers are not allowed in the testing center because of this factor and plus the teachers are not allowed to know what type of questions will be asked for. The teacher should follow the state rules and teach his/her lessons around the standards that are provided for the grade level he/she teaches.
Solution #6
If you contact the school administration, it is your word against the other teacher's. You have nothing to help back up your claim if she denies your allegation about her. I would suggest speaking to the teacher and letting her know that she should seriously rethink her plan.
Solution #7
This must be reported to administration. This friend has just involved you in cheating on state tests! In a situation like this, you must protect yourself.
Solution #8
Talk to your friend and explain to her that what she is doing is wrong. Tell her that you will help her better prepare her students if she needs you. But that if she does falsify the students answers you will have to report her actions.
Solution #9
Stay as far away from this teacher as possible!