This is the second annual report on the performance of California higher education. The indicators are organized into five major sections: (1) demographic characteristics of California's population; (2) fiscal support of public postsecondary education and student financial aid as well as an indicator of instructional expenditures in the public systems; (3) student preparation indicators that include the size and composition of the state's public high school graduation classes and their academic preparation for education beyond high school; (4) student access indicators that show participation in California's postsecondary education at the first-time freshman level, the community college transfer level, and the graduate student level; and (5) indicators of student experiences that report persistence, the numbers of degrees awarded, and faculty composition. The report concludes that California's colleges and universities need to increasingly develop and publicize clear statements of their unique missions, goals, and expectations and they should gather and report information on the postgraduate activities of their alumni in order to help guide curricular changes and student choice. Seventy-five tables of data are included. (Author/JLS)