This is the fourth annual report to Congress by the US Department of Education. Among the highlights of this report are: (1) More students were reported by states as having enrolled in vocational and technical education courses in Program Year (PY) 2002-2003 than in the past three years; (2) There remain concerns about the quality and reliability of states' performance data; (3) Twenty-three states were awarded incentive grants from the department during PY 2002-2003 for having exceeded their performance levels overall under Perkins III, Title I of the Workforce Investment Act (WIA), and the Adult Education and Family Literacy Act (AEFLA)--This represents an increase from PY 2001-2002 when sixteen states were awarded incentive grants; (4) Six states met or exceeded their PY 2002-2003 Perkins secondary performance levels, in every single indicator--This represents a decrease from PY 2001-2002 when 15 states met all their secondary performance levels; and (5) Five states met or exceeded their Perkins postsecondary performance levels, in every single indicator--This represents a decrease from PY 2001-2002 when eight states met all of their postsecondary performances levels. This report to Congress is divided into three sections. The first section enumerates the accountability requirements in Perkins III and describes efforts by the department to work with states to develop their performance accountability systems and their performance levels for vocational and technical education. The second section presents highlights of states' progress in meeting their PY 2002-2003 performance levels, along with individual state data reports. The final section discusses issues pertaining to the quality and reliability of states' Perkins performance data. As Perkins III continues to be implemented across this country, the department will report its progress as well as identify further opportunities to strengthen Perkins III accountability systems that meet the intent of the law. Attachments include: (1) Perkins State Allocations: PY 2002-2003; (2) States' Definitions of "Concentrators": PY 2002-2003; (3) Individual State Data Profiles: PY 2002-2003; and (4) Glossary of Terms. (Contains 8 figures, 7 tables, and 5 footnotes.)