Thus, the postsecondary commission noted in its recommendation, the concept of a free education at publicly owned colleges and universities has already been largely abandoned. The panel called for an end to the 23-year-old restriction on the use of student payments for faculty salaries and other instructional expenses. The commission said graduate students and those in medical, dental and veterinary schools should pay 10 to 20 percent more than undergraduates. The board is also weighing the possibility of recommending tuition charges at community colleges.

State legislators, who are attempting to close a $1.4 billion deficit for the fiscal year ending June 30, are expected to be receptive.

George Deukmejian, the Republican who takes office as Governor Jan. 3, is preparing a budget for next fiscal year and is also expected to call for the imposition of tuition.

Mr. Deukmejian is also expected to ask for a substantial long-term reduction in spending by the universities and colleges, a possibility that is stirring great apprehension on the campuses.

Faculty members did not receive cost-of-living increases this year, and they argue that they have already suffered disproportionately from the state's financial problems.

Nevertheless, it appears that the problems have only begun for the state colleges and universities. As a result of a declining birth rate, the Postsecondary Education Commission predicts that the number of Californians aged 18 to 24 will decline 20 percent in the next decade.

The high levels of unemployment in the last two years appear to have contributed to a small rise in enrollment recently, but educators say the long-term outlook is for a steady decline in enrollment and pressure to close some institutions - a prospect the university system opposes vigorously.