This report compares Arkansas's reading and mathematics performance on the most recent administrations of the state assessment with performance on the National Assessment of Educational Progress (NAEP). To indicate how Arkansas is doing in narrowing the academic achievement gap between African American, Latino, or low-income students and their white, middle class peers, the report presents NAEP data by race, ethnicity, and family income. The report presents other state-level data on Arkansas's K-college education, including demographic distribution across each educational level, participation and success in Advanced Placement, percentage of students taking high-level courses, school funding gaps, and high school and college graduation rates. On the 2001-2002 Arkansas reading test, 57 percent of all 4th graders were proficient or above in reading; 1998 NAEP results showed 23 percent of all 4th graders in Arkansas at the proficient level. 1998 NAEP results show 29 percent of white 4th graders were reading at or above the proficient level, compared to 7 percent of African American 4th graders. In 2001, 20 percent of all 8th graders in Arkansas were proficient or better in mathematics, while 2000 NAEP results for 8th grade mathematics showed only 14 percent of Arkansas students at the proficient level. 2000 NAEP results show 19 percent of Arkansas white 8th graders scored at the proficient level or better in math, compared to 2 percent of African American 8th graders. Arkansas's African American-white 4th grade reading achievement gap was 21st among states in 1998. Along with six other sates, Arkansas had the sixth largest African American-white achievement gap on the 2000 NAEP grade 8 mathematics assessment. African American students represent 23 percent of the public K-12 enrollment, but a considerably smaller percentage take Advanced Placement (AP) exams. Nearly 40 percent of Arkansas high school students enroll in college, compared to 54 percent nationwide. One in five Arkansas secondary classes is taught by teachers lacking a major or minor in the field. In Arkansas, districts with the highest child poverty rates have fewer state and local dollars to spend per student than districts with the lowest poverty. (SM)