This report on the flow of transfer students from the California community colleges to the University of California (UC) and the California State University (CSU) systems and to independent colleges and universities in the state focuses on policy issues, trends in transfer among ethnic groups, and enrollment rates. Following a brief introduction to the report in part 1, part 2 discusses transfer and articulation policy issues and proposals for alleviating currently perceived problems. This section also summarizes historical data on the enrollment of new freshmen and transfer students at California's four-year colleges. Part 3 deals with transfer rates among ethnic minorities, tracing enrollment trends among Black, Hispanic, Asian, Filipino, and American Indian students and comparing ethnic diversity by campus. Part 4 summarizes trends in transfer to the UC, CSU, and independent colleges and universities and examines differences among community colleges. Appendixes include data on the numbers of students transferring from each California community college to the UC and CSU systems and to independent colleges between 1981-82 and 1988-89, the ethnic distribution of each community college's transfer students to UC and CSU in fall 1987 and fall 1988, and fall term and full-year transfer statistics. (JMC)