This report compares Hawaii'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 Hawaii is doing in narrowing the academic achievement gap between poor and non-poor students, the report presents NAEP data by family income. The report presents other state-level data on Hawaii'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. In 2002, 43 percent of all 5th graders met or exceeded state reading standards, while 17 percent of 4th graders performed at the proficient level on the 1998 NAEP assessment. In 1998, significantly more white than Latino 4th graders were proficient or above in reading. In 2002, 20 percent of all 8th graders met or exceeded state standards for mathematics. Significantly more white than Latino 8th graders were proficient or above in math. Hawaii's poor/nonpoor achievement gap was close to the median among states for 4th grade. Low-income 4th graders in Hawaii were among the lowest performing on the 1998 NAEP grade 4 reading assessment compared to low-income 4th graders nationwide. Hawaii's poor/nonpoor achievement gap was smallest in NAEP math. Hawaii's 8th graders performed below low-income students in most other states on the 2000 NAEP math assessment. Asian American and white students take Advanced Placement (AP) at a much higher rate than African American students. About 37 percent of Hawaii's high school students enroll in college, compared to 54 percent nationwide. Nearly one third of Hawaii's secondary classes are taught by teachers lacking a major or minor in the field. Students from all ethnic groups are represented relatively equally in special education and gifted education. (SM)