An overview is provided of the problems facing the Los Angeles Community College District (LACCD), the current situation and immediate program of action, and the District's objectives for the short- and long-term future. The first section addresses the nature and scope of the problems brought about in the LACCD and California community colleges by declining enrollments and reduced funding. Pointing to underfunding as the central problem faced by the LACCD, this section explains that 70% of California's community college districts need special funding to stabilize their operations and reviews the findings of investigations of the LACCD by outside agencies. The next sections consider changes that took place in the LACCD in 1985-86, including: (1) a 10% reduction in force of district administration; (2) a reorganization of policy and operations; (3) the implementation of several new programs integrating the programs of LACCD colleges with K-12 and other segments of higher education; and (4) a decentralization of operational responsibilities. In the next section, plans for restructuring the faculty and staff of the LACCD are reviewed. After stating the objectives of the LACCD Board of Trustees and looking at plans for program expansion, the report concludes with comments on the future of the LACCD. (EJV)