This working paper is one of eleven individual research reports in which researchers with expertise in older adult populations gathered the most current available data, examined policies, regulations, and programs relevant to population aging and older Californians, and presented findings and recommendations. The issues examined-- economic well-being, work and retirement, housing, transportation, health status, mental health status, long-term care, residential care, family caregiving, and successful aging-- encompass most of the key issues concerning an aging population and Californias principal responses to its senior citizens. The report notes that the states efforts toward meeting the needs of older adults with mental illnesses must be improved. Programs must be expanded so that more older adults can be served. Further, the report features pertinent efforts made by universities and private organizations, and argues that these organizations assume a critical role in providing for the well being of the older population. Finally, three emerging issues that warrant further attention are highlighted: the increasing diversity of the aging population; the expansion of managed mental health care; and the development of a statewide system of mental health care for older adults. (Contains 60 references and 2 tables.) (GCP)