Annually, in accordance with Senate Concurrent Resolution No. 51 of the 1965 General Legislative Session, the California State University and the University of California submit to the California Postsecondary Education Commission information on faculty salaries for their respective institutions and for a set of comparison colleges and universities located primarily outside of California. Commission staff develops estimates of the percentage changes in faculty salaries in California public universities that will enable them to attain parity with their respective comparison groups in the forthcoming fiscal year. These final parity figures for both systems are based on final data from five of the eight University of California comparison institutions, and 19 of the 20 California State University comparison institutions. A preliminary estimate of faculty salary parity was reported to the Department of Finance and the Office of the Legislative Analyst last December. This report contains a brief description of the methodology employed to calculate the parity percentages, and the faculty salary increase trends over the past 23 years. Supplemental Budget Language adopted by the Legislature in 1998 precludes changes in the methodology prior to the 2002-03 budget cycle. Because of the lengthy lead times required to develop the Governor's Budget, if any changes in the methodology are contemplated for the 2005-06 cycle, discussions among the members of the Commission's Faculty Salary Advisory Committee should begin no later than the of 2004. (Contains 7 displays.).