How the California State University and University of California systems deal with the budget crisis will be critical to these institutions' reputations and future.

Yes, students are paying more for classes. And yes, the CSUs (23 campuses, including Cal Poly Pomona, Cal State Fullerton, Cal State Los Angeles) are expecting $345 million in cuts to their budgets.

UC faces a $410 million loss in state funding.

We reluctantly agree that enrollment needs to be limited to match the supply of teachers and classes.

However, we'd caution wholesale cutting of classes and instructor layoffs. UC Berkeley eliminated 200 full-time jobs last week and was eyeing layoffs. CSU has laid off about 60 personnel statewide and put a freeze on hiring while eliminating more than 2,000 positions, most of which were unfilled.

But individual campuses should already be getting a feel for how the 30 percent increase in fees will affect enrollment. It's sure to go down as some students reassess their financial footing, finding the increases intolerable.

As reported in our front-page story Aug. 11, regional community colleges are seeing increased interest as those planning on attending a four-year college have reassessed their higher-ed careers due to those unplanned-for cost increases.

Too, some who can't get the classes they need at Cal State and UC campuses are turning to community colleges for undergrad courses. Even with elevated costs, community colleges remain the most affordable higher education in the state system.

Mt. San Antonio, Citrus and Rio Hondo have also seen an increase in student-aid applications since raising fees due to reduced funding under the current state budget. But most community colleges were already bursting at the seams before the current influx of four- year college students seeking relief from ever increasing costs and crammed courses. Now they're trying to make room as well as provide financial aid to even more students.

UC and Cal State officials ought to meet mid-term to see how each school, each department is handling this crisis. Only then should they make adjustments, cutting instructors and classes as the very last resort.

Handling this storm is critical for these excellent institutions. We'll be watching. What we don't want to see is a state education system that for all intents and purposes acts like private institutions, pricing the public out of public education.