This report addresses the issue of how to reform and or restructure the educational system to respond more effectively to the needs of minority students and to prepare minority students for productive service and a better quality of life. In particular, the report discusses the achievement patterns of minority youth enrolled in California public schools and factors that contribute to the differences in the achievement patterns of minority and non-minority youth. Following an introduction, a section on the contextual background highlights the conditions under which California public schools operate. The next section contains a description of achievement patterns and provides profiles of the general achievement patterns of students statewide, with an emphasis on minority student performance. The following section presents the findings of a study of factors contributing to differences in achievement, which used multiple regression analysis with data collected from 6 school years. A section on resource allocation issues notes the difficulty of analyzing information in this area and recommends changes that would make comparison possible. The final section presents the report's four conclusions and three policy recommendations. Included are 13 figures and 34 references. (JB)