The report presents a detailed discussion of certain health manpower trends and policy issues of concern to California policymakers in a framework of defined hypothetical health manpower goals. The report estimates that the physician supply and the physician population ratio will increase 3-4 percent annually through 1980, but that the increase is unlikely to alter distribution which is presently skewed in favor of major metropolitan areas. The report notes that the supply of nurses has increased substantially in recent years, and while the registered nurse distribution favors urban areas, licensed vocational nurses are distributed more evenly in rural areas. The report concludes that State investment in undergraduate medical education enrollment expansion is costly and ineffective, whereas enlarged support for graduate medical education has a variety of potential benefits to California. The report suggests that out-of-date health professional licensure laws limit the national allocation of manpower resources and hence need to be reformed. Regarding comprehensive manpower planning, the report concludes there is a need to involve higher educational institutions, licensure boards, and finance and legislative agencies in the planning process, as well as to develop a more useful intelligence system to provide the data and analysis necessary for decisionmaking. Recommendations are included. (JR)