This document examines the effects of budget cuts and supply restriction and rationing within the California Community College (CCC) system during the fiscal year (FY) 2002-03. Fiscal Crises within the California State Government in FY 2002-03 have resulted in a reduction in available funding for the CCC system; as a result the system's ability to provide an adequate supply of courses to meet the demand of educational consumers in the state is in question. Prior to any enacted fee increases to help ameliorate the problem, a downward trend of section offerings occurred. Because the fee increase did not contribute to this downward trend, the student headcount and course section offering losses that occurred were primarily attributable to a supply constriction in the system. This document discusses and provides tables for the following areas: (1) funding; (2) student headcount; (3) course sections; and (4) student demographics. Findings from the study include: (1) a significant drop in the number of first-time and returning students; (2) a significant drop in the number in special admit (K-12) students; (3) an increase in the number of continuing students; (4) a decrease in the percentage of first-time/returning students who attend classes in the evening; and (5) a decrease in the percentage of students who were older. (Contains 22 tables.) (Author/JS)