In the 1980s California poverty rates increased dramatically. Poverty rates were substantially higher in rural areas and for Hispanics, Asians, single-parent families, and children. The percentage of the labor force in poverty increased, and poverty rates were exceptionally high for the unemployed and for "discouraged workers." The incidence of rural poverty was highest in the most rural counties and lowest in the rural portions of metropolitan counties. Urban poverty differed from rural poverty in several respects, suggesting the need for differentiated policies and programs. Elderly persons, female-headed families, and Native Americans had higher poverty rates in rural areas than in urban areas, whereas urban poverty was highest among Blacks, Hispanics, and Asians. Rural poverty was highly correlated with work injuries, large-scale agriculture, substandard housing, limited medical attention, and poor education. Food Stamps, Supplemental Security Insurance, and Medi-Cal were more frequently used by the urban poor than the rural poor, while Community Service Block grants and the Women, Infants, and Children program were more frequently used by the rural poor. The research needed to provide a basis for policy decisions about poverty is severely hampered by the lack of updated statistical information on demographic characteristics and service delivery. This report contains 61 references and 37 data tables, maps, and figures. Appendices describe data sources and research methodology, define glossary terms, and include poverty rates for California counties and the transcript of a panel discussion about this report. (SV)