Information available in the 1988-89 California Governor's budget staff report includes an overview of the Governor's budget; an overview of the budget for higher education; proposed budgets for the University of California, the California State University, California community colleges, Hastings College of the Law, and the California Maritime Academy; capital outlay funding for the segments; the California Student Aid Commission; and areas of special interest to the commission (cooperative programs among educational institutions, student financial aid programs, future needs for educational facilities, and faculty salaries). The conclusions identify this budget as solid for postsecondary education, offering sufficient funding for enrollment growth, daily attendance growth, faculty salary increases, facilities needs, and new research. There is no money, however, to fund reform initiatives in the community colleges. (SM)