This report compares Colorado'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 Colorado 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 Colorado'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. Results from the 2002 Colorado reading test showed 61 percent of all 4th graders were proficient or above in reading; 1998 NAEP results showed 34 percent of 4th graders at the proficient level or above. Significantly more white than Latino 4th graders were proficient or above in reading. In 2002, 39 percent of all 8th graders were proficient or advanced in mathematics. Significantly more white than Latino 8th graders were proficient or above in math. Colorado did not participate in the 2000 NAEP 8th grade mathematics assessment. Colorado's Latino-white 4th grade reading achievement gap was 16th among the states in 1998. Latino students represent 20 percent of the public K-12 enrollment, but a considerably smaller percentage take Advanced Placement (AP) exams. Asian American students have an extremely high rate of AP test taking. Nearly 40 percent of Colorado high school students enroll in college, compared to 54 percent nationwide. One in five Colorado secondary classes is taught by teachers lacking a major or minor in the field. Latino students are underrepresented in gifted and talented classes. Districts with higher child poverty rates and higher minority enrollments have the fewest state and local dollars to spend per student. (SM)