In this report, we assess the effects of recent changes in state funding rates on California Community Colleges (CCC) noncredit courses, and recommend that the Legislature explore four key issues moving forward. We believe that by addressing the appropriate funding rates for noncredit instruction, the respective roles and definitions of credit and noncredit instruction, the accessibility of such instruction across the state, and the system the state has for measuring the effectiveness of noncredit and adult education, the Legislature could improve significantly the effectiveness of noncredit and adult education in California over the coming years.