After many years of teacher layoffs in California, school districts around the state are hiring again. With the influx of new K-12 funding, districts are looking to lower student-teacher ratios and reinstate classes and programs that were reduced or eliminated during the Great Recession. However, mounting evidence indicates that teacher supply has not kept pace with the increased demand. This report examines indicators of current shortages, discusses their impact on students, analyzes factors that influence teacher supply and demand in California and nationally, and recommends policies to ensure an adequate supply of fully prepared teachers for the fields and locations where they are needed. California must take purposeful steps now if the state is to avoid more acute, widespread shortages of teachers. Earlier state policy initiatives were greatly reduced or terminated during the era of state budget cuts. Reinstating incentives for teacher recruitment and retention will be a critical component of a thoughtful strategy to address the emerging teacher shortage. Based upon this analysis and prior research, the authors offer the following policy recommendations for consideration: (1) Reinstate the CalTeach program; (2) Create incentives to attract diverse, talented individuals to teach in high-need locations and fields; (3) Create innovative pipelines into teaching; (4) Increase access to high-quality preparation programs that support teacher success in high-need districts and fields; (5) Ensure that all beginning teachers have access to a high-quality support and mentoring program; (6) Provide incentives that support teachers' ability to stay in or re-enter the profession; and (7) Improve teaching conditions by supporting administrator training. [For the research brief, see ED606335.]