This report is about the changing patterns of segregation in American public schools through the 2003-2004 school year. It begins by examining the transformation of racial composition in the nation's schools, the dynamic patterns of segregation and desegregation of all racial groups in regions, states, and districts by using data from 1968 until 2003-4. It examines both the changes over the last decade (1991-2003) as well as those over a much longer period (1954-2003). Unless otherwise specified data from this report are computed from the Common Core of Data of the National Center for Education Statistics of the U.S. Department of Education for the years 1991 and 2003. Where data for a given year is missing, such as the racial statistics from Georgia and Virginia for 1991, it is noted in the tables and the nearest year is substituted and noted. It then explores the relationship between racial and economic segregation, documents the growing presence of multiracial schools, as well as discusses the implications of the lifting of desegregation orders on districts and the possible policy alternatives. The report ends with a brief discussion of what could be done to increase integration in schools. (Contains 81 footnotes, 15 tables, and 3 figures.)