As California's community colleges move into the 21st century, they face the challenges of providing access to affordable, high quality education and becoming sources of economic renewal for the communities they serve. To the measure that they address these issues, the colleges will become key assets for solving the economic and social problems of the state. Economic needs in the next century will include responding to the growth in the service and other sectors of the workforce, providing necessary technical skills training, and providing job retraining. The community colleges are also in a unique position to address the state's vital social needs, including respect for diversity, responsible citizenship, and lifelong learning. However, for the colleges to meet these needs, the following state policy issues must be addressed: (1) the college mission must continue to reflect the changing needs of the state and emphasize the inalienable right to receive access to top quality transfer and workforce education; (2) human and physical resources must be strengthened to enable the delivery of the college's mission, (3) effective leadership must be provided by the Board of Governors and the Chancellor's Office; and (4) the decline in funding for postsecondary education in California must be reversed to provide adequate education and training opportunities. Contains 32 references. (TGI)