This report responds to a legislative mandate to examine the funding of the Statewide Nursing Program at the California State University, an external degree program of advanced training for practicing nurses. Included in the report are: (1) a brief history of the program; (2) the State University's rationale for offering it; (3) a description of the program's students, faculty, curriculum, instructional methods, and special features; (4) a discussion of the program's historical and current funding; and (5) findings based on the above information. The report concludes that, although such a non-traditional program is justified, because the Statewide Nursing Program has been under State support for only 2 years and complete information regarding its funding is not yet available, a definitive recommendation is premature regarding its appropriate level of funding, but current funding formulas for traditional campus-based programs are clearly not appropriate for it. Most of the document consists of seven appendixes which include official letters concerning the report, a listing of nursing program teaching sites, and other related documents. (DB)