This report compares Illinois'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 Illinois 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 Illinois'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, 59 percent of all 5th graders met or exceeded state reading standards. Illinois did not participate in the 1998 NAEP 4th grade reading assessment. Significantly more white than black 5th graders met or exceeded state reading standards. In 2002, 53 percent of all 8th graders met or exceeded state standards for mathematics. On the 2000 NAEP 8th grade mathematics assessment, 68 percent of Illinois students performed at the basic level, while 27 percent performed at the proficient level or above. Significantly more white than black 8th graders met or exceeded state mathematics standards. The African American-white 8th grade mathematics gap fell 13th among the states in 2000, with African American students performing in the top quarter among states in NAEP math. African American and Latino students are underrepresented in Advanced Placement (AP) exams. Asian American students have extremely high rates of AP test taking. About 48 percent of Illinois high school students enroll in college, compared to 54 percent nationwide. One in five Illinois secondary classes are taught by teachers lacking a major or minor in the field. African American students and Latino students are underrepresented in gifted education programs. Districts with higher child poverty rates and higher minority enrollments have fewer state and local dollars to spend per student than districts with lower poverty rates and lower minority enrollments. (SM)