This report compares Massachusetts'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 Massachusetts 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. Data from the 2002 state assessment show that 54 percent of all 4th graders were proficient or above in English/Language Arts, with significantly more white than Latino 4th graders performing at this level. On the 1998 NAEP 4th grade reading assessment, 37 percent of Massachusetts students performed at or above the proficient level. The 2002 state assessment data show that 34 percent of all 8th graders were proficient or above in mathematics, with white students far outperforming Latino students. 2000 NAEP mathematics assessment results show that 32 percent of 8th graders were at or above the proficient level. Massachusetts' Latino-white 4th grade reading achievement gap and 8th grade mathematics gap fell 25th and 22nd among the states in 1998 and 2000, respectively. African Americans and Latinos are underrepresented in Advanced Placement (AP) exam taking, while Asian American students take AP exams in extremely high numbers. About 54 percent of Massachusetts' high school students enroll in college, equal to the national rate. One in five Massachusetts secondary classes are taught by teachers lacking a major or minor in the field. African Americans and Latinos are somewhat overrepresented in special education and underrepresented in gifted education. Districts with higher child poverty rates and higher minority enrollments have the most state and local dollars to spend per student. (SM)