A background paper on long-range enrollment and facilities planning in California's public segments of higher education is designed to: (1) establish a policy framework within which the Postsecondary Education Commission can examine and assess the planning processes of the segments; and (2) describe the processes, identifying major differences among the segments for short-term enrollment planning as utilized for the annual state budgeting process, long-range enrollment planning as utilized for state capital outlay and institutional long-range planning purposes, and ongoing capital outlay planning. Major sections take up the following topics: a policy context for the Commission's planning priorities; population projections through 2020; long-range enrollment projections (background, recent projections, demography, and enrollment projection methodologies); segmental enrollment planning (California Community Colleges, California State University, and University of California); capital outlay planning; and state budgeting (e.g., power of the executive, workload formulae, and the state capital outlay process). Conclusions are offered regarding long-range planning activities of the segments, enrollment planning, capital outlay planning, and state budget and capital outlay approval. Nine appendices focus on such topics as: differences in mission and size among the three public segments; methodology for projecting population for California by race/ethnicity with age/sex detail 1980-2020; and kindergarten through 12th grade enrollment and high school graduation projections conducted by the demographic research unit. (SM)