This study helps to answer the broader question of why Latino students across the U.S. persistently drop out of school at the highest rates compared to students of other racial groups by focusing on the institutional workings of the various levels of the Oregon school system. Latino students have the highest drop out rates in Oregon. The higher drop out rates for Latino students in Oregon reflect the national trend, though the latest national rates report considerably higher drop out rates for Latino students compared to Oregon's drop out rates. Quantitative research verifies that race is a critical factor affecting national high school completion rates for Latino youth. The purpose of this study is to reveal the major, persistent problems within a school system that hinder learning for Latino students who are primarily English Language learners. Toward this purpose, this study examines significant state and federal education laws, examines rhetoric related to education equality and interviews educators at various levels of the Oregon education system. The research reveals three primary reasons for the failure of Oregon schools to graduate Latino students. First, these primarily Spanish-speaking students are not provided the type of quality bilingual intercultural education required to promote learning. Second, Latino students experience a discriminatory school environment. Third, available funding is not being used to help English language learners to succeed in learning the English language nor academic material. The research outcome is relevant because what was found in Oregon reflects patterns of educational practice and policy and laws that have been reported in other states, supporting the idea that educational racism is institutional at all levels of the education system. The research also reveals specific tactics used to repress the advancement of Latino students and finds that public rhetoric supporting education equality among the races does not reflect practice and procedures at all levels of the public school institution that determine outcomes for Latino students in their individual schools. Despite rhetoric to the contrary, educators are deciding not to make the necessary changes to improve education for Latinos. It is apparent that persistent inequality is the result of colonialist attitudes and policies that continue to restrict learning for the majority of the Latino population, limiting their opportunities for advancement beyond the poverty characteristic of their low wage working class status in the U.S. / Graduation date: 2004