After many years of teacher layoffs, a change is underway in California: With new money in the system, districts are hiring again, and they cannot find enough qualified teachers to fill their vacancies. Shortages in many fields and locations across the state have been provoked by a steep decline in candidates preparing to teach, coupled with an increase in demand fueled largely by teacher attrition and schools' reinstatement of previously cut staff positions. This has triggered a rapid increase in the issuance of permits and credentials for underprepared teachers. A majority of voters polled are concerned about the shortage and support actions to mitigate its impact. This analysis shows the genesis of the current shortages, evaluates the factors that will determine future trends, and makes recommendations for addressing these problems. [For the full report, see ED606333.]