This report compares Iowa'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 Iowa 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 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 2001-2002, 69 percent of all 4th graders were proficient or above in reading on the Iowa Test of Basic Skills. Significantly more white than black 4th graders were proficient or above in reading. On the 1998 NAEP 4th grade reading assessment, 35 percent of Iowa students performed at or above the proficient level. In 2001-2002, 73 percent of all 8th graders were proficient or above in mathematics. Significantly more white than black 8th graders were proficient or above in math. Iowa did not participate in the NAEP 8th grade mathematics assessment. Iowa's African American-white 4th grade reading achievement gap was the 8th largest among the states in 1998. African American and Latino students are underrepresented in taking Advanced Placement exams, while Asian Americans have a high rate of AP test taking. About 53 percent of Iowa high school students enroll in college, compared to 54 percent nationwide. African American students graduate from the state college at a significantly lower rate than students from other groups. Nearly one in seven Iowa secondary classes are taught by teachers lacking a major or minor in the field. Districts with higher child poverty rates and higher minority enrollments have the fewest state and local dollars to spend per student. (SM)