American students are making encouraging progress in math and science but are falling behind in reading when they reach their senior year in high school, a panel said Wednesday in its yearly report on the nation's educational progress.

The seventh annual report by the National Education Goals Panel also noted progress on several other indicators of activity from early childhood through the adult years: More parents are reading stories to their 3- to 5-year-olds. More people, including women and minorities, are getting math and science degrees.That progress, however, was tempered by problems with drug use, violence at schools, a drop in participation in adult education and a lack of teachers with an academic background in the subject they teach.

The panel comprises eight governors, four members of Congress, four state legislators, Education Secretary Richard Riley and his senior adviser, Carol H. Rasco.

Among the findings, compiled from numerous studies, national examinations and surveys:

- The percentage of fourth-graders who met the panel's standards in mathematics rose from 13 in 1990 to 21 in 1996.

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- Mathematics and science degrees as a percentage of all degrees awarded increased from 39 to 42 between 1991 and 1995 for all students. For minorities, it rose from 39 to 40. For women, 35 to 37.

- The percentage of high school teachers with an undergraduate degree in their main teaching assignment dropped from 66 to 63 between 1991 and 1994.

- Reading achievement was level for fourth- and eighth-graders. But the percentage of 12th-graders meeting the panel's standards for reading achievement dropped from 40 to 36 between 1992 and 1996.

- Teachers reported increases in threats and injuries, from 10 percent in 1991 to 15 percent in 1994. Secondary school teachers reported an increase in class disruptions by students, from 37 percent in 1991 to 46 percent in 1994.

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