The Commission on Teacher Credentialing (CTC) is supported entirely by fee revenue, most of which is derived from credential and examination fees. These fees have generated adequate revenues to finance the commission in the past, but in recent years they have failed to keep pace with the commission's funding needs. Recognizing this problem, the Legislature (in the Supplemental Report of the 1984 Budget Act) directed the Legislative Analyst to examine alternatives to the present system for funding the commission. This report was prepared in response to the Legislature's directive. It (1) identifies options for funding the operations of the commission, (2) evaluates these options, and (3) provides our recommendations.