This report addresses one central issue: the nature and extent of the teacher shortage in Arizona. Its purpose is to inform policymakers and help prevent poor policy decisions and wasted resources. The report presents new research along with policy and program recommendations intended to serve as points of departure for understanding and discussing teacher supply and demand in Arizona. Among the research findings are the following: (1) Arizona did not have an overall shortage of teachers when this report was written, but a delicate balance existed between demand and supply; (2) despite an overall surplus, teacher shortages were already occurring in specific regions and subject-matter areas, and these shortfalls were expected to worsen; (3) managing attrition and encouraging the return of inactive certified teachers will be crucial to ensure a sufficient teacher pool; and (4) policy changes are needed to increase and monitor Arizona's supply of teachers, especially in specific areas. The report provides policy and program recommendations in four areas: production and recruitment; compensation; classroom environment; and data tracking. Appended are: Potential Components Not Used in This Study; Measures Used and Their Alternatives; Data Sources; 2009-2010 Enrollment and Teacher Projections table; Arizona Inactive Certified Teacher Survey Methodology; and Current Activity of Inactive Certified Teachers and 5 data-related tables. (Contains 35 references, 11 tables, and 8 figures.)