This report responds to a request by the Chancellor of the California Community Colleges to analyze the need for and location of a new educational center in the Palmdale area of the Antelope Valley Community College District north of Los Angeles. The failure of Proposition 1C has cast the timing of this and many other college and university capital outlay projects into some doubt until a new funding mechanism can be found. Nonetheless, for reasons discussed in part two of this report, the California Postsecondary Education Commission believes it should take action on the proposal now and that the district should submit its budget change proposal and detailed budgetary plans by February. Also, the Commission comments on the uncertainties facing community college capital financing--and higher education generally--in the next few years and explains why planning should continue in spite of the financing difficulties facing the State. In the third part of the report, the Commission analyzes the district's proposal for the new center within the context of the Commission's Guidelines for the Review of Proposed University Campuses, Community Colleges, and Educational Centers. The Commission's conclusions and recommendations regarding the proposed center are found in part one. Contains 24 references and 5 appendices. (VWC)