American students’ math achievement is “at a mediocre level” compared with that of their peers worldwide, according to a new report by a federal panel, which recommended that schools focus on key skills that prepare students to learn algebra.

“The sharp falloff in mathematics achievement in the U.S. begins as students reach late middle school, where, for more and more students, algebra course work begins,” said the report of the National Mathematics Advisory Panel, appointed two years ago by President Bush. “Students who complete Algebra II are more than twice as likely to graduate from college compared to students with less mathematical preparation.”

The report, adopted unanimously by the panel on Thursday and presented to Education Secretary Margaret Spellings, said that prekindergarten-to-eighth-grade math curriculums should be streamlined and put focused attention on skills like the handling of whole numbers and fractions and certain aspects of geometry and measurement.

It offers specific goals for students in different grades. For example, it said that by the end of the third grade, students should be proficient in adding and subtracting whole numbers. Two years later, they should be proficient in multiplying and dividing them. By the end of the sixth grade, the report said, students should have mastered the multiplication and division of fractions and decimals.