The 2007 State Preschool Yearbook is the fifth in a series of annual reports profiling state-funded prekindergarten programs in the United States. This latest Yearbook presents data on state-funded prekindergarten during the 2006-2007 school year. The first report in this series focused on programs for the 2001-2002 school year and established a baseline against which we may now measure progress over six years. Tracking these trends is essential, since changes in states' policies on preschool education will influence how successfully America's next generation will compete in the knowledge economy.