The New York state educational system must change to reduce the devastatingly high dropout rate among Hispanic, Black and American Indian students. A dropout is defined as a student who has been dropped from a school's enrollment and who has not graduated from 12th grade nor been transferred to another school. Research into the causes of dropping out reveal that being held back one or more grades is the best dropout predictor. Students leave school before graduation for the following reasons: (1) personal, cultural, and linguistic dehumanization; (2) academic humiliation; (3) institutionalized discharge; (4) discriminatory high school admissions policies and practices; (5) lack of appropriate instruction for language minority students; (6) family conditions; and (7) work and economic factors. Dropping out has serious social and economic effects, including lost income, poverty, drug abuse, early pregnancy, poor health practices, and increased need for social services. Dropout prevention efforts in New York State are discussed and dismissed as ineffective. Recommendations for long-term systemic changes are made. Issues for further study are listed. (PS)