From January, 1997 to July, 1998, the California Community College System has been developing a strategy to enable community colleges to make a significant difference in the social and economic success of the state. The Board of Governors has conducted special study sessions on the work of the California Higher Education Policy Center, the RAND Corporation, the California Postsecondary Education Commission, the Commission on Innovation, the Citizen's Commission for Higher Education, the California State University, and the University of California. In addition, the board and the chancellor created a task force to document problems and develop an overall strategy for dealing with this challenge. Completed in September of 1997, the task force report serves as the primary basis for the strategic responses outlined in this document. Included are three sections: (1) major findings, which describe reduced college access and resources, increased capital outlay, and fallen participation rate; (2) a strategic response for the system of community colleges; and (3) a strategic response for the state. (AS)