This study examined the ability of California to meet increased demand for postsecondary education without significantly altering the basic historical assumptions and policies that have governed relations between the state and its institutions of higher learning. Results of a series of analyses that estimated projected enrollments and costs under various scenarios suggested that significant changes would be needed, and the report lists eight options to be considered: (1) eliminate certain forms of output and reduce certain services; (2) restrict access to the system; (3) increase revenue stream (tuition); (4) deliver higher education programs through other types of organizations; (5) change the governance structure; (6) change delivery systems by moving to off-campus instruction, greater use of technology, revising pedagogical approaches, and revising curriculums; (7) eliminate either the senior year in high school or the freshman year in college; and (8) change the relationship between higher education and the state government. The appendix contains information on methodology and the assumptions made to arrive at the findings. (CH)