The recommendations presented in this report were developed by the Commission on the Future of the North Carolina Community College System to improve the operation, funding, and economic and social returns of the state's community colleges. Section 1 provides a summary of upcoming challenges facing the colleges and the Commission's response to those challenges. Six fundamental changes for improving the system are recommended: (1) provide every community college student access to quality teaching and academic support services; (2) establish mechanisms to promote accountability and increased flexibility in funding; (3) provide opportunities for all adults to master basic critical thinking skills; (4) help business and industry adapt to technological change and promote small business development; (5) build strong partnerships with the public schools and state universities; and (6) develop strong leadership for the system and its colleges. After section 2 reviews the economic conditions that necessitate an exemplary community college system, section 3 identifies various problems experienced by the colleges, including issues related to funding levels, salaries, resource allocation, planning and goal setting, professional development, comprehensive education, access, basic skills, business and industry support, leadership, and state and local governance. Section 4 sets forth the Commission's major goals, and section 5 offers 33 specific recommendations for achieving them. Finally, section 6 presents a timetable for implementing the recommendations. Financial projections are appended. (AJL)