In a direct reversal from last year, the 2007-08 achievement gap between schools in southeast Wisconsin and those in the rest of the state, as measured by Wisconsin Knowledge and Concepts Exam (WKCE) standardized test scores, narrowed in all subjects at all grade levels. While the region lags the state in WKCE test scores and schools making adequate yearly progress, it exceeds the state in ACT scores and AP test scores. The region has worse truancy and dropout rates than the state, matches the state in attendance, and exceeds the state in school spending. Many categories of analysis throughout this report underscore how districts facing urban poverty issues fare much worse on most measures than suburban and rural districts, though some smaller urban areas also face challenges. Southeast Wisconsin contains some of the most successful schools in the state, as well as some of the most distressed schools. (Contains 1 chart and 10 tables.) [Research for this report was funded by the Children's Hospital of Wisconsin, Multiple Listing Services, Northwestern Mutual Foundation and Stifel Nicolaus Investment Services.]