This document describes the progress made by the California public education system after the passage of Proposition 98 that established a stable funding base for education. The first of three sections discusses reforms made in the areas of accountability, curriculum, teaching, partnerships, and underrepresented students in colleges. The second section examines specialized programs, particularly programs in the areas of child development, bilingual education, migrant education, career/vocational education, special education, and dropout prevention. The last section describes the two support areas of school facilities and financial needs. (SI)