This report describes the disproportionate incarceration of minority youth in the state of New Jersey. It opens with an introduction followed by a section, "Problem Statement," which describes the plight of New Jersey's Black and Hispanic children, research in this area, recent historical trends, state and community programs, and the need for alternatives. The next section, "Historical Perspective," details the last 20 years of major changes in the New Jersey juvenile justice system in response to both state and Federal legislation. "Minorities in New Jersey: Highlights of Existing Reports" offers details of gubernatorially appointed and legislatively established committees as well as a variety of agencies that have studied the problems of youth and developed reports with substantive recommendations. A conclusion sums up the views and work of the committee. A final section details recommendations in the following areas: (1) prevention; (2) cultural sensitivity/competencies/training; (3) legislation and the juvenile code; (4) evaluation and accountability; (5) employment and vocational training; (6) funding; and (7) miscellaneous. Appendix A lists and describes seven New Jersey children and youth commissions and committees. Appendix B contains a dissenting opinion (M. J. O'Shea). (JB)