SEATTLE (AP) - When Andrea Peterson landed her first teaching job, she faced the daunting task of creating a music program with almost no money for equipment or supplies in a climate where standards-based learning was the focus and music just provided a break for students and teachers.

Her drive and creativity in overcoming those challenges are being honored with her recognition as national teacher of the year.

The principal who nominated Peterson for the state honor that led to the national award said he's worked with many outstanding teachers in his 22 years as an educator.

But of Peterson, Wayne Kettler said, "She's just that one step above anybody I've ever worked with before."

Kettler and others who have worked with Peterson at Monte Cristo Elementary School in the small northwest Washington community of Granite Falls talk about the ways she has integrated the learning from other classrooms into her music program and her creativity in working around challenges such as the lack of money for new music. Kettler left Monte Cristo Elementary this school year to take a new job in the nearby Everett School District.

When students were reading S.E. Hinton's novel "The Outsiders" in their regular classroom, Peterson helped them write a 30-minute play with scenes from the book. Then they chose three Broadway tunes that focused on race, equality and social justice, the themes of the book. Peterson composed two other songs herself after classroom discussions about the play and the book.

"She really is an incredible instructor, one of the best I've ever seen regardless of grade levels and subject matter," said Joel Thaut, superintendent of the Granite Falls School District.

On his way to catch a flight to Thursday's scheduled awards ceremony in Washington, D.C., he acknowledged that Peterson's honor was the worst-kept secret in Granite Falls, about 36 miles north of Seattle.

"This is going to mean a lot to our little town," Thaut said, explaining that everyone in the old logging and mining town - particularly the 2,200 children in the two elementary schools, one middle school and one high school - has been inspired to learn that people from small towns can do anything, even win national honors.

"It's pretty cool," Thaut said. "We're always happy to brag about her."

As national teacher of the year, Peterson will be paid to spend the next year outside of the classroom, as a national and international spokeswoman for education. The national honor is a project of the Council of Chief State School Officers, based in the nation's capital.

Peterson, 33, who was the state of Washington's first National Board Certificated Teacher in early and middle childhood music, has taught in Granite Falls her entire 10-year career.

Not surprisingly, she is a big believer in the value of arts education. She said it's essential for schools to offer classes like art or music and physical education because for some kids one of those subjects is the only thing that motivates them to come back to school day after day.

"If you can tap into that motivation, you can get them to achieve higher at all levels," Peterson said before flying to Washington, D.C., with her infant daughter, Faith, and her husband, Joel.

She started as a high school and middle school band teacher but had so few students to work with that she accepted an opportunity to make a difference with the younger kids when the chance was offered. Now, nearly every child who finishes the fifth grade in her program can read music and has an understanding of music theory and history.

Born in British Columbia, Peterson is the daughter of a veteran teacher of 34 years. Her family moved to the United States when she was 8 and she graduated in 1991 from Onalaska High School in Onalaska, Wash.

She won an academic scholarship to enter the University of Washington's premed program, but after visiting her twin brothers at their music school in Colorado, she switched to music and gave up scholarships to follow her heart.

She earned bachelor's degrees in vocal and instrumental music and music education from the University of Washington in 1996.

Peterson is only the second music teacher to be honored as the national teacher of the year in the 57 years the award has been given by a committee representing 15 national education organizations. This is the fourth year in a row that a Washington teacher was a finalist for the national honor.

The other finalists for the 2007 honor were Justin Minkel, a second grade teacher at Jones Elementary School in Springdale, Ark.; Joshua Anderson, a speech, debate and language arts teacher at Olathe Northwest High School in Olathe, Kan.; and Tamra Tiong, a special education teacher at Dulce Elementary School in Dulce, N.M.