California Governor Gavin Newsom proposed closing the Division of Juvenile Justice's (DJJ's) remaining facilities in favor of local alternatives as part of the 2020-21 state budget (Newsom, 2020). Communities across California have long organized to bring awareness about the systemic racism and harms of youth detention and incarceration. The closure of DJJ presents a historic opportunity to transform the state's approach to youth justice. To ensure the responsible realignment of DJJ to local systems, policymakers must address the significant racial and ethnic disparities among youth committed to DJJ and those transferred to adult court for prosecution. A realigned system can respond to youths' challenges and harmful behavior through a framework focused on youth development, health, and racial justice. This fact sheet analyzes 2019 data collected by the California Department of Justice (DOJ), which finds that youth of color experience the greatest harms of the justice system. State policies guiding juvenile justice realignment must address the significant racial and ethnic disparities among youth committed to DJJ, transferred to adult court, and at every decision-making point. [This factsheet was produced in partnership with the W. Haywood Burns Institute and the California Alliance for Youth and Community Justice.]