California's education system is not keeping up with the changing demands of the state's economy--soon, California will face a shortage of skilled workers. Projections to 2025 suggest that the economy will continue to need more and more highly educated workers, but that the state will not be able to meet that demand. If current trends persist, only 35 percent of working-age adults in California will have at least a bachelor's degree in 2025, but 41 percent of jobs will require at least a bachelor's degree. This equates to a shortfall of one million college graduates. Substantial improvements in educational outcomes are needed to meet the demands of tomorrow's economy and to ensure the economic prosperity of Californians. Failure to make improvements will result in a less-productive economy, lower incomes for residents, less tax revenue for the state, and more dependence on social services.