Noting that California is in the middle of a decade during which its adolescent population will increase by 36 percent to nearly 5 million by 2005, this report examines the well-being of California's adolescents. The report's introduction notes that although California youth are more likely to complete high school, less likely to be unemployed, and less likely to become parents at an early age than were teens several years ago, they are worse off in comparison to teens in other states. Further, disparities in well-being between African American and Latino youth and others remain. The introduction also notes that although substantial new resources have been dedicated to education, many citizens are endorsing a highly punitive approach with youth, rather than strengthening preventive measures. Following the introduction, the report discusses adolescent well-being in the following areas: (1) family economics (child poverty, youth unemployment, after-school care); (2) health (teen births, chlamydia rates, health insurance); (3) education (preparation for college, high school dropout rates, academic achievement); and (4) safety (incarceration rates, gun violence, foster care). The final section of the report presents recommendations for action by the public sector, by the private sector, by local communities, by parents, and by all Californians to capitalize on the potential of California's youth. (KB)