This report compares Maryland'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 Maryland 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 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 state assessment, 42 percent of all 5th graders were satisfactory or above in reading, while 61 percent of 4th graders performed at the basic level or higher and 29 percent at the proficient level or higher on the 1998 NAEP assessment. Significantly more white than black 5th graders were proficient or above in reading. In the 2002 state assessment, 35 percent of all 8th graders were satisfactory or above in mathematics, while 29 percent performed at or above the proficient level on the 2000 NAEP mathematics assessment. Significantly more white than black 8th graders were proficient or above in math. Maryland (along with three other states) had the eighth largest African American-white 4th grade reading achievement gap in 1998. Maryland had the third largest African American-white achievement gap on the 2000 NAEP grade 8 math assessment. African Americans are underrepresented in Advanced Placement (AP) exam taking, while Asian Americans have an extremely high AP test taking rates. Over 40 percent of Maryland high school students enroll in college, compared to 54 percent nationwide. Over one in five Maryland secondary classes are taught by teachers lacking a major or minor in the field. African Americans are underrepresented in gifted education, while Asian Americans enroll in gifted education programs at higher rates. Districts with higher child poverty rates and higher minority enrollments have the fewest state and local dollars to spend per student. (SM)