Background information is provided on a number of conditions affecting Ontario's community colleges. The first section, dealing with financial issues, considers the college environment in the 1980s; examines the provincial government's perspective on priorities, the allocation process, government funding, and budgetary expenditures and trends; and discusses operating funds and the effects of declining funds on the colleges. After detailing the likely effects of changes in federal programs on the community colleges in the 1980s, this section goes on to outline the division of funds among postsecondary institutions, programs of growth, capital funds planning, avocational funding, and means of broadening the colleges' financial base. The second section presents discussions of human resources issues, which include a summary of the collective bargaining model in operation within the college system, an examination of collective bargaining agreements, and a presentation of the system's policy for human resource renewal. The third section deals with broad policy issues in college system management. Beginning with an executive summary and recommendations, this section discusses the college system; modes of program rationalization; institutional and industry-based training; the roles of general, polytechnic, and continuing education; and assumptions about the future. Each section includes appendices covering areas such as college statutes, collective bargaining legislation, and state regulations. (HB)