At the request of the state legislature, the California State Postsecondary Education Commission presents comments on "The Consortium," a 14-year-old external degree program which the California State University decided to disband. Commission comments on the university report include concerns over the funding mechanisms currently employed for consortium programs offered by the campuses (since the Commission recommended that all degree-granting programs be state-funded). The three main recommendations offered by the Commission are that (1) the Governor and legislature accept the State University's report, "The Consortium of the California State University" as adequately addressing the issues raised by the Supplemental Language to the Budget Act of 1987; (2) the California State University seek state support for any program that was once a part of the Consortium; and (3) if the cost of operating these programs is more than the amount generated by the state general fund revenue, the state university (with the Department of Finance and the Office of the Legislative Analyst) should develop suitable mechanisms to fund the difference. Appendices include related correspondence and "The Consortium of the California State University: A Report." The 13-page report with its appendixes comprise the major part of the document. Appendixes include a brief history of the Consortium and memoranda on the transfer of programs to individual campuses. (SM)