This report, seventh in a series, is designed to measure progress made by the nation toward the eight National Education Goals. This year's "Goals Report" highlights student achievement in mathematics and science, two of the core academic subjects in which all students are expected to demonstrate competence. The promising news is that more students in grades 4, 8, and 12 were considered proficient or competent in mathematics than students were 6 years ago, and more students are receiving degrees in mathematics or science. The first chapter discusses "Mathematics and Science Achievement for the 21st Century." Chapter 2 discusses achievement at the national level and presents exhibits that portray progress toward each of the eight national education goals. Chapter 3 considers achievement at the state level, with a page for each state. Overall, it appears that national progress on the 26 core indicators is slightly better than that described in the 1996 "Goals Report," with significant improvement in 6 areas. Significant improvements have also been seen in many areas at the state level. Gratifying as improvements are, the National Education Goals Panel recognizes that much remains to be done. To this end, the Panel recommends setting tougher standards, aligning all components of the education system with these standards, and strengthening the subject matter knowledge and teaching skills of teachers. Four appendixes present data collection schedules, technical sources for national and state indicators, and acknowledgments. (Contains 26 exhibits and 7 tables.) (SLD)