This handbook begins with a history of funding in California's community colleges, explaining that financial support for community colleges has evolved over the years, as have the colleges themselves and the purposes they serve. Following this history of funding is a discussion of 1988's Proposition 98, which guaranteed annual funding and revenue for K-12 and community colleges. In 1990, Proposition 98 was amended with Proposition 111. The amendments that were put into place to stabilize state funds ended up reducing the State General Fund support from 40.33% in 1986-1987 to 33% in 1993-1994. The debate over Proposition 98 and 111 led to a return to program-based funding, as is examined in the next section of the handbook. In this section categories of operation are defined, standards and workload measures are described, target and standard allocations are made, levels of funding and how they are to be appropriated are considered, and recommendations are outlined. This portion of the handbook also includes a "frequently-asked-questions" section about program-based funding. The handbook moves on to discuss full-time faculty obligations and financial accounting, outlining 12 principles for sound fiscal management. Charts of accounts and a glossary of the terms used in the text are included. (TGO)