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This report discusses the education of Latinos, Blacks, and low-income students in California. Over the past 10 years, California's society has shifted from a predominantly White to a predominantly ethnic society. The number of the state's people living in poverty has increased, and poverty has been concentrating in big cities. The achievement gap between Latino and Black students and other students is significant. The report suggests that the causes of low achievement include the quality of education that poor and minority children receive and an environment that has limited resources with which to support students. Some schools have attained high achievement among minority and low-income students. Foremost among common characteristics of these schools is a belief that all students can learn. Three of these schools, Sweetwater High School, Claremont Middle School, and Bell Gardens Elementary School are covered. Fifteen recommendations concerning the curriculum, teachers, principals, parents, and communities of California are offered. The report concludes with an appendix. (RJC)