The "State Teacher Policy Yearbook" examines what is arguably the single most powerful authority over the teaching profession: state government. This California edition of the National Council on Teacher Quality's (NCTQ's) "State Teacher Policy Yearbook" is the first of what will be an annual look at the status of state policies impacting the teaching profession. It is hoped that this report will help focus attention on areas where state policymakers could make improvements to benefit both students and teachers. This policy evaluation is broken down into six areas that include a total of 27 goals. Broadly, these goals examine the impact of state policy on the preparation, certification, licensure, compensation and effectiveness of teachers across the elementary, secondary and special education spectra. California's progress toward meeting these goals is summarized. Overall, California has done a good job in meeting some goals, but there is significant room for improvement in several areas. California completely missed eight goals, met a small portion of five, partially met nine, nearly met three and fully met two. California stands out for having strong research-based reading instruction requirements and for its support of differential pay initiatives. The state, however, gives teachers tenure after just two years. This short probationary period may grant tenure to ineffective teachers. The body of the report provides a more detailed breakdown of the state's strengths and weaknesses in each area. Detailed rationale and "Food for Thought" for each area and corresponding goal are appended. (Contains 72 figures.) [Additional funding for this first edition of the "State Teacher Policy Yearbook" was provided by the Achelis Foundation, Bodman Foundation, Daniel's Fund, Fisher Family Foundation, Gleason Foundation, and The Teaching Commission. This state report is part of NCTQ's State Teacher Policy Yearbook series. For the national summary, see ED506661.]