This report reviews projected enrollment growth of the three segments of higher education in California: the University of California (UC), the California State University (CSU), and the California Community Colleges (CCC). The report concludes that in order to serve the enrollment growth of the next decade, the three segments should move to year-round operations, which would enable the state to serve up to one-third more students. To accomplish this change, it is recommended that the state legislature: fund capital outlays based on year-round operations, thus avoiding construction of unnecessary buildings and allowing higher priority projects to be funded; provide state support for enrollment growth in all seasons; give campuses flexibility to determine timing of and methods used to reach year-round operation goals; limit redirection of students during transition to year-round operations; and set appropriate fees for summer terms. It is also recommended that the three segments report annually to the legislature on their progress in implementing year-round operations. Sections of the report discuss projected enrollment and current capacities, the impact of enrollment growth, year-round operations, impacts on operating costs, impacts on students, effect on faculty, and impact on summer extracurricular programs. (CH)