A report by the executive director of the California Postsecondary Education Commission addresses the state's capacity to accommodate demand for postsecondary enrollment through the beginning of the 21st century. The major population trends likely to occur in California during that period are outlined. The planning process now being coordinated between the Commission and the educational segments in the state are described, and the operational assumptions guiding this planning process are summarized. A profile of likely aggregate enrollment demand for elementary/secondary and postsecondary education is provided, and the funding needed to meet the demand is discussed. The effects of the state's current constitutional limitations on appropriation on the funding are also considered. Finally, some of the major planning issues the state should be prepared to address in the near future are briefly examined. Contains 7 references. (MSE)