This study examined faculty research in California presently under way; analyzed the research in terms of the stipulation in the Donahoe Act regarding functions of segments of California higher education; made proposals for implementing recommendations resulting from the study. Material for the study was drawn from documents made available by numerous state offices, national higher education sources, visits with officials and faculty of the State Colleges and University, meetings with members of the Governor's staff and correspondence with educators of national prominence. General recommendations include more state support for: (1) faculty research, (2) research into the connection between the discovery of knowledge and meaningful teaching, and (3) a broader definition of the Donahoe Act. Encouragement should be given to (1) maintaining the present 3 divisions of California higher education, (2) permitting greater flexibility of the individual state colleges in the administration of their instructional budgets, and (3) involving qualified State College and University faculty members in doctoral teaching and research supervision (joint doctoral program). Specific recommendations are delineated further. The report contains over 150 pages of appended information and concludes with a bibliography. (Author/NF)