This report compares Delaware'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 Delaware 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 Delaware'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. In 2002, 78 percent of all 5th graders met or surpassed the state standard for reading, while only 25 percent of 4th graders performed at the proficient level on the 1998 NAEP for reading. Significantly more white than black 5th graders met or surpassed state standards. In 2002, 48 percent of all 8th graders met or surpassed the state standards for mathematics. Significantly more white than black 8th graders met these standards. Delaware did not participate in the 2000 NAEP 8th grade mathematics assessment. Delaware had the third smallest African American-white 4th grade reading achievement gap in 1998. African American students represent 30 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. Over 40 percent of Delaware high school students enroll in college, compared to 54 percent nationwide. Over one third of Delaware's secondary classes are taught by teachers lacking a major or minor in the field. African American students are disproportionately represented in special education and underrepresented in gifted education. Districts with higher child poverty rates and higher minority enrollments have more state and local dollars to spend per student than districts with lower poverty and minority enrollment rates. (SM)