This report compares Nebraska'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 Nebraska is doing in narrowing the academic achievement gap between African American and Latino students and their white, middle class peers, the report presents NAEP data by race/ethnicity. 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 2000-2001, 74 percent of all 4th graders were proficient in reading. Nebraska did not participate in the 1998 NAEP 4th grade assessment. In 2000-2001, 72 percent of all 8th graders were proficient in mathematics. Results on the 2000 NAEP 8th grade mathematics assessment show 34 percent of white students and 11 percent of Latino students scoring at the proficient level or above. Nebraska's Latino-White 8th math achievement gap was 22nd among the states in 2000. African Americans and Latinos are underrepresented in Advanced Placement exam taking. About 52 percent of Nebraska 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. Approximately one in seven Nebraska secondary classes are taught by teachers lacking a major or minor in the field. Districts with the highest child poverty rates and with the highest minority enrollments have the fewest state and local dollars to spend per student. (SM)