New Jersey's urban--or "Abbott"--schools have improved at the preschool and elementary school level, but lag when it comes to middle and high school performance. These are the key findings of an Abbott Indicators Project report entitled, "The Abbott Districts in 2005-06: Progress and Challenges." The report was prepared by Education Law Center and presented to the Assembly Education Committee. Other major findings include: (1) This school year, more than 40,000 3- and 4-year-olds are receiving a full-day, high-quality education through the Abbott preschool program; (2) Studies show that the preschool program has had a significant, positive effect on children's Kindergarten readiness skills; (3) The achievement gap between Abbott and non-Abbott fourth graders has been cut in half in both language arts literacy and in math; (4) Many schools do not employ the professionals needed to provide one-on-one tutoring, parent engagement and education, and dropout prevention programs and services; and (5) Available estimates show that graduation rates in the Abbott districts have improved in the past 10 years but remain lower than in non-Abbott districts. The report recommendations include concrete actions that the legislature, the governor, and the New Jersey Department of Education can take to increase accountability, ensure greater policy and program stability, and sustain and deepen reform, including fully supporting secondary reform, the latest Abbott component to get underway this year. (Contains 7 endnotes.) [This report was written with input from David Sciarra. Additional funding for the Abbott Indicators Project was provided by the Victoria Foundation.]