This report compares Mississippi'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 Mississippi 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 2002, 84 percent of all 4th graders were proficient or above in reading on the state assessment, while 18 percent were proficient or above on the 1998 NAEP reading assessment. Significantly more whites than blacks were at this level. In 2002, 46 percent of all 8th graders were proficient or above on the state mathematics assessment, while 8 percent of Mississippi 8th graders were proficient or above on the 2000 NAEP mathematics assessment. Significantly more whites than blacks performed at this level. Mississippi had the sixth smallest African American-white 4th grade reading achievement gap nationwide on the 1998 NAEP assessment and the eighth smallest 8th grade mathematics achievement gap in 2000. African American students are underrepresented in Advanced Placement (AP) exam taking, overrepresented in special education, and underrepresented in gifted programs. About 34 percent of Mississippi's high school students enroll in college, compared to 54 percent nationwide. African American students graduate from the state college at a lower rate than students from other groups. Three in ten Mississippi secondary classes are taught by teachers lacking a major or minor in the field. Districts with higher child poverty rates have fewer state and local dollars to spend per student, while districts with higher minority enrollments have more state and local dollars to spend per student. (SM)