This report from the California State Legislature's Joint Committee for Review of the Master Plan for Higher Education presents proposals and recommendations regarding the future of the state's community colleges. Section I introduces the major demographic, social, and economic challenges facing the California community colleges over the next two decades, and states the intention of subsequent proposals with respect to strengthening the colleges' capacities to meet the emerging needs of the state. Section II offers recommendations to ensure that students have opportunities for access and success at the community college through adequate assessment, counseling, and placement. Section III reviews the primary goals of the community college, including recommendations for strengthening transfer education, vocational education, and transitional education (i.e., remedial education, English as a second language instruction, and noncredit adult education). Section IV focuses on faculty, administrators, and staff, covering such areas as credentials, recruitment, affirmative action, the employment of part-time faculty, tenure, collective bargaining, student services staff, professional development, and the intellectual and personal environment. Section V describes the community colleges' governance system, focusing on the roles of the board of governors, the district governing boards, and campus boards. Section VI offers a critique of community college financing and recommends a differential funding system to remedy current defects. Finally, section VII offers commitee staff conclusions concerning costs and related matters. (RO)