Throughout history, societal investments in children have resulted in increased prosperity for individuals, communities, states and nations. This proved to be the case for California in the 1950s and 1960s, when the state strongly supported children's futures. Despite once following this path to prosperity, California has de-prioritized children over time in state policy and budget decisions. 2009, in particular, was a devastating year for California's children. When push came to shove over the state's budget crunch, children suffered the deepest cuts. While federal stimulus funding is providing some relief to the children impacted, this support is temporary. These are undeniably difficult economic times in California, and additional, large-scale state budget cuts are widely expected in the near future. This tough climate, however, does not justify the state's short-sighted decision-making regarding investments in children. Other states facing severe budget shortfalls in 2009, such as Oregon, New Jersey and Florida, have recognized the clear value of putting children first and acted accordingly. California's failure to prioritize children is jeopardizing the state's chances for a sustainable, long-term economic recovery. For example, current reports estimate that the state will face a shortfall of one million college graduates by 2025. Yet policymakers continue to cut funding for education, leaving California ranked near last in the nation on adjusted per pupil spending. Families make the needs of their children the top priority, even when struggling to make ends meet. The state should be held accountable to reflect this fundamental value of its citizens. California's 9.4 million children--13% of all children in the nation--are its most important asset, and they are in dire need of attention now. This "2010 California Report Card" provides a policy agenda that prioritizes children in order to strengthen California. The report covers: (1) Key policy and budgetary decisions made in 2009 that affect children's well-being; (2) Policy objectives for improving children's well-being; (3) Recent data reflecting the status of California's children; and (4) updates on specific policy recommendations that must be accomplished within the current legislative session. (Contains 322 endnotes.)