This report compares South Carolina'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 South Carolina is doing in narrowing the academic achievement gap between African American and Latino students and their white, middle class peers, the report presents NAEP data by race/ethnicity. 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, 38 percent of all 4th graders were proficient or above in reading on the state assessment, while 22 percent of 4th graders were proficient or above on the 1998 NAEP reading assessment. Significantly more white than black 4th graders were proficient or above. In 2001, 18 percent of all 8th graders were proficient or above in mathematics on the state assessment. On the 2000 NAEP 8th grade mathematics assessment, 18 percent of South Carolina 8th graders were proficient or above. Significantly more white than African American 8th graders were proficient or above. South Carolina had the 8th smallest African American-white 4th grade reading achievement gap nationwide in 1998 and the 8th smallest African American-white 8th grade mathematics achievement gap in 2000. African American students are underrepresented in Advanced Placement (AP) test taking and in gifted and talented program enrollment. About 33 percent of South Carolina's high school students enroll in college, compared to 54 percent nationwide. Over one in five South Carolina secondary classes are taught by teachers lacking a major or minor in the field. Districts with higher child poverty rates, and those with higher minority enrollments, have the fewest state and local dollars to spend per student. (SM)