This Race to the Top - Early Learning Challenge (RTT-ELC) annual performance report for the reporting period of 01-01-2016 to 12-31-2016 provides a summary of New Mexico's accomplishments, lessons learned, challenges, and strategies that New Mexico will implement to address those challenges. New Mexico has made significant progress on the Race to the Top - Early Learning Challenge (RTT-ELC) grant since it began in January 2013, with much of Years One and Two spent on gearing up to implement the grant, including hiring key staff; establishing contracts; and establishing governance and communications processes. Year Three highlights included continued strides towards building a robust, high quality learning system for our youngest children; further improving communications with key stakeholders; implementing the first statewide implementation of the Kindergarten Observation Tool; increasing TEACH scholarship participants; incorporating FOCUS-TQRIS across all New Mexico early learning programs; and initiating work in the identified Early Childhood Investment Zones. The 2016 Annual Performance Report provides an overview of New Mexico's RTT-ELC activities for Year Four of the grant, highlighting several areas of progress and accomplishments within the six projects towards building successful state "systems of systems" that connect early care health and education into a continuum of integrated, high-quality, comprehensive services, including: (1) Grants Manageent; (2) Raising the Quality of Early Learning Programs; (3) Investing in Communities; (4) Professional Development; (5) Promoting Accountability; and (6) Supporting Schools in Meeting Each Child's Needs