This report describes funding trends for the CCC system and assesses its ability to meet its future challenges. It finds that CCC revenue growth has fallen behind that of other systems in both California and the rest of the nation, and that CCC’s complicated allocation system is ripe for reform. The author identifies two ways to improve the system’s resource picture. The first is to fund CCC at the level the legislature guaranteed following the passage of Proposition 98 in 1988. The second is to raise community college tuition and fees, currently the lowest in the nation, while maintaining broad access to the system through the increased use of grants, tax credits, and financial aid programs.