Between 1985 and 1989, the number of minority youth incarcerated in California increased by about 50 percent, while the number of incarcerated white youth decreased by approximately 10 percent. Black juveniles were significantly over-represented at every stage of juvenile justice processing. Even though they represented less than 9 percent of the State youth population, black youth accounted for 19 percent of juvenile arrests and for an even larger share of the State's incarcerated juvenile population. Hispanic juveniles represented 34 percent of all youth arrested in 1989 and had a 34-percent share of the California youth population. Asian American youth had a 10-percent share of the youth population, but were under-represented at all stages of juvenile justice processing. Analysis of minority youth representation in secure facilities in the four target counties (San Francisco, Los Angeles, Merced, and Sacramento) confirmed the preceding statewide patterns. Causes for disparities in minority youth processing included institutional racism within the juvenile justice system, social and environmental factors, language and cultural barriers, drug abuse and drug sales, failure of the school system, family dysfunction, budget cuts and declining resources, and lack of alternatives to incarceration. Solutions to the over-representation of minority groups are offered as well as recommended State law and policy changes. 18 tables