This report compares Maine'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 Maine is doing in narrowing the academic achievement gap between poor and non-poor students, the report presents NAEP data by family income. The report presents other state-level data on 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 the 2002, 49 percent of all 4th graders met or exceeded state reading standards, while 36 percent performed at or above the proficient level on the 1998 NAEP reading assessment. Significantly more white than Latino 4th graders read at the proficient or above level in 1998. In 2002, 21 percent of all 8th graders met or exceeded state standards for mathematics, while 32 percent performed at or above the proficient level on the 2000 NAEP assessment. Maine has the smallest poor/nonpoor achievement gap in NAEP reading and mathematics nationwide. African American, Asian, Latino, and white students participate in Advanced Placement exams at proportional rates. About 43 percent of Maine high school students enroll in college, compared to 54 percent nationwide. Three in ten Maine secondary classes are taught by teachers lacking a major or minor in the field. Participation in gifted and talented programs and special education is relatively proportional across ethnic groups. Districts with higher child poverty rates and higher minority enrollments have fewer state and local dollars to spend per student than districts with lower poverty rates and lower minority enrollments. (SM)