California's budget woes will create havoc in public higher education and eventually prevent thousands of qualified students from being admitted to the state university system, San Jose State University's interim president warned Thursday.

Saying he's not going to launch major initiatives because he'll be gone in January, President Joseph Crowley laid out his observations after seven weeks at the helm of what he called a dynamic campus that ``feels good.''

Crowley was appointed interim president until a permanent replacement is named for Robert Caret, who left in July to take the presidency at Towson University in Baltimore.

Soon, San Jose State and other California State University campuses will begin feeling the effects of enrollment caps prompted by the state's budget problems.

``Thousands of qualified high school students entitled to be enrolled will not be because of the enrollment cap,'' he said.

In a speech to hundreds of faculty and staff members and a smattering of students at Morris Dailey Auditorium on Thursday, Crowley explained his vision of San Jose State's strengths and outlined what he viewed as its challenges.

The biggest immediate challenge, of course, is the current budget. The university must soon finalize its budget now that the Legislature has finally adopted the state budget.

``Instruction will be protected, and layoffs will be avoided,'' Crowley said. But the university must prepare for possible mid-year budget cuts and further reductions next year, he said.