This paper provides background information for a Commission discussion regarding the challenges that community college districts confront when trying to serve rural and remote communities. The paper describes the dynamics of statewide and regional population growth occurring in California and an overview of program-based funding--the budgetary tool used by the state to fund community college districts. The advisory committee will also consider solutions that are being proposed by various lawmakers, such as a bill by Senator Scott, SB 362, which would increase funding to local districts that serve large geographic territories that are sparsely populated. It is anticipated that the Commission will consider for adoption at its September 2006 meeting a set of recommendations proposed by the advisory committee. (Contains 4 displays.)