The 2004 National Education Technology Plan paints a hopeful picture of technology in American schools, highlighting examples of effective use and applauding the innovation that is occurring. The plan touts the benefits of the Internet and the opportunities it offers for improving education, such as enhanced access to interactive learning resources, virtual courses, and easily accessible, up-to-date information. An analysis of the technology data submitted to the Department for the 2003-2004 school year reveals some promising trends. The percentage of teachers receiving technology professional development increased from 61% in 2003 to 71% in 2004. Districts have also made improvements in their infrastructures, with the percentage of districts that have every classroom connected to the Internet up from 72% to 79%. In addition, 60% of districts met the guideline of five or fewer students per modern computer, even though the definition of a modern computer was upgraded substantially in 2004. Other data reveal some of the challenges districts face in their use of technology. In some districts, the number of computers varies widely from one school to the next, so students are not all receiving the same benefits. Many schools continue to lack the technical support staff to maximize their use of technology, so that on average it takes more than three days to service a computer that is down. Finally, nearly one-third of teachers use technology with their students only about once a month or less, suggesting that they need more support and training in order to be able to reap the benefits technology offers. Appendices include: (1) District Statistics; (2) Local Technology Plan Guidelines (School Year 2004-2005 through 2006-2007); (3) No Child Left Behind Title IID Technology Entitlement Grants (Fund Code 160); (4) No Child Left Behind Title IID Model Technology Integration Grants (Fund Code 165); (5) No Child Left Behind Title IID Technology Enhancement Grants (Fund Code 170); (6) No Child Left Behind Title IID Content Institutes (Fund Codes 137/141/151/171); and (7) No Child Left Behind Title II D Assistive Technology Summer Institutes (Fund Code 171). (Contains 27 footnotes.) [This report was prepared by the Massachusetts Department of Education and the Instructional Technology Group.]