Results of the annual state survey of faculty salaries in California colleges and universities are presented and analyzed in two parts: the University of California and the California State University and Colleges, and the California Community Colleges. For the four-year institutions, a history of the salary reports is given and certain funding procedures explained. The two four-year systems are compared in these areas: salary requests, grants, and the cost of fringe benefits; economic conditions and faculty salaries; projected salaries and their accuracy; and projected cost of fringe benefits. For the two-year institutions, the salary structures are explained, and comparisons are made with the state four-year institutions and also with community colleges in other states. (MSE)