A program-based funding model is presented for the California community colleges, using five major categories of programs and services (i.e., instruction, instructional services and libraries, student services, maintenance and operations, and institutional support). Following an executive summary, section I of the report deals with the need for community college finance reform, discussing the deficiencies of the existing funding system, the search for a new approach, and the formation and work of the Task Force on Community College Financing Reform. The principles of community college finance are examined in section II. Section III presents the program-based funding model, covering program categories, definitions of workload measures, funding standards, and determination of allocations. Section IV focuses on the implementation of program-based funding, including material on program improvement, cost of living adjustments, equalization, guaranteed revenues, growth and decline, phasing in implementation, and responsibilities for implementation and change. Section V offers a simulation of the consequences of program-based funding, looking at data sources, the fiscal impact of adopting the proposed standards, and the costs of guaranteed revenue provisions. Finally, section VI reviews the tasks that must be accomplished before implementation would be feasible. Appendices include standards, small college and district adjustment factors, a list of task force members, a glossary of terms, relevant legislation, and minority opinions. (EJV)