Changes in economics education that have taken place in the California State University system since 1967 are described. The author, Chancellor of the California State University and Colleges, suggests that these changes have created a body of students able to understand public questions and make wise economic decisions. A major portion of the report discusses the nationwide problem of economic illiteracy, defined as the inability of citizens to cope effectively with the economic dimensions of public questions and with the economic dimensions of their daily lives. This problem, however, has been counterbalanced by the Economics Education Centers on 14 California college campuses. Included in the report are guidelines for increasing funding and teaching staff at these centers, a discussion of specific responsibilities of the centers, and a description of the relationship of the centers to local school districts and to other university departments. (Author/DB)