Prepared by California's Los Rios Community College District, this environmental scan summarizes social, economic, and political changes at the national, state, and district levels, focusing on trends in the district's three colleges: American River College, Cosumnes River College, and Sacramento City College. The first section reviews demographic trends, including population changes through 1996 in the Greater Sacramento area, projected changes through 2006, changes in ethnic composition, immigration trends, statewide and Sacramento-area poverty rates, and single-parent households. The next sections analyze the area's economic and employment outlook, reporting data on civilian employment by industry for 1983 and 1997 and projecting employment changes through 2005, and review changing workforce skill requirements in the state and area. The following section presents a market analysis of other educational providers in the area, including data on enrollment, costs at local institutions, strengths and weaknesses of other institutions compared with district colleges, and challenges and opportunities in the future. Next, the report discusses public perceptions of higher education in California, national and state budgets and legislation, and calls for accountability. Changes in district enrollment patterns are then reviewed, including student age and ethnicity. Enrollment projections through 2006 and data tables are provided. (BCY)