This report compares Alabama'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 Alabama 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 Alabama's 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. On Alabama's reading test, white students scored significantly higher than African Americans and Latinos. Between 1992-98, Alabama 4th graders gained four points on the NAEP reading assessment. Between 1990-2000, 8th graders gained nine points on the NAEP 8th grade math assessment. Alabama's African American-white achievement gap fell 15th among states on the 1998 NAEP grade 4 reading assessment. Alabama had the sixth largest African American-white achievement gap on the 2000 NAEP grade 8 math assessment. Significantly larger numbers of white students participated and succeeded in Advanced Placement and graduated from high school than did minority group students. Almost one-quarter of Alabama's secondary classes in core subjects were taught by teachers lacking either a major or minor in that field. Alabama secondary school students took high-level courses at significantly lower rates than did students in the top states. Districts with the highest child poverty rates and highest minority enrollments received fewer state and local dollars per student than districts with the lowest poverty and fewer minorities. (SM)