This document represents a progress report of a study into the role and value of the California State University's central administration. It contains as an appendix a report by the State University on the evolution of its central administration, and it includes a review by Commission staff of relevant national literature on higher education governance, and a synthesis of impressions obtained by the staff from 50 interviews with individuals both within and outside of the State University, including members of the faculty; campus level academic, student, and business affairs staff; campus presidents; and past and current Trustees. In addition, a list of preliminary conclusions from the study thus far is provided as well as the staff's plans for further study, prior to submitting a draft of the final report. Among the conclusions are that: (1) the State University needs to be stabilized, both internally and externally; (2) there appears to be a climate of over-regulation, both within the State University system and between the system and the State; and (3) many of the existing organizational arrangements in the State University are fundamentally sound and work well. Contains 10 references. (GLR)