This report compares Tennessee'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 Tennessee 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. On the 1998 NAEP reading assessment, 58 percent of 4th graders performed at the basic level or above, with 25 percent at the proficient level. White 4th graders significantly outscored black and Latino 4th graders in reading. ON the 2000 NAEP assessment, 53 percent of 8th graders performed at the basic level or above in mathematics, with 17 percent at the proficient level. White 8th graders significantly outscored black and Latino 8th graders. Tennessee had the 10th smallest African American-white 4th grade reading achievement gap statewide in 1998. Tennessee's African American-white 8th grade mathematics achievement gap was 15th among the states on the 2000 NAEP. African Americans are underrepresented in Advanced Placement (AP) exam taking, while Asian Americans have a high rate of AP exam taking. About 33 percent of Tennessee high school students enroll in college, compared to 54 percent nationwide. Native Americans graduate from the state college at a lower rate than students from other groups. Over one-third of Tennessee's secondary classes are taught by teachers lacking a major or minor in the field. Districts with the highest child poverty rates have more state and local dollars to spend per student than districts with the lowest poverty rates. (SM)