The growth in California's student population currently exceeds the peak years of the baby boom generation by more than one million students. This increase, combined with deferred maintenance, has created a strain on the state's educational facilities. An analysis of this predicament is presented in this bulletin. It describes why California needs more school buildings and offers some statistics on the steady increases in enrollment. The state's new initiative to reduce class sizes has also created a demand for more classroom space. Furthermore, the state faces the prospect of investing billions of dollars to repair, maintain, and modernize schools. Many schools, due to age, present special challenges with regard to maintenance, asbestos, and radon. It is argued that educational facilities play an important part in education and that educators must recognize the ways that facilities directly affect student achievement. However, some innovations, such as smaller class size, will mean new school designs. Although reduced class sizes are desirable, they are more expensive and many schools already lack sufficient funds. Some of the actions that Californians can take to improve the present condition of schools are provided. A chart estimates the state's school facility needs for the next 5 years. (RJM)