Jerry Brown on Higher Ed Funding in the State of the State

In case you missed it, Gov. Brown's State of the State message yesterday contained only a brief paragraph on public higher education.  Most of his education remarks were directed at K-12.  Below is what he said about higher ed:

"With respect to higher education, cost pressures are relentless and many students cannot get the classes they need. A half million fewer students this year enrolled in the community colleges than in 2008. Graduation in four years is the exception and transition from one segment to the other is difficult. The University of California, the Cal State system and the community colleges are all working on this. The key here is thoughtful change, working with the faculty and the college presidents. But tuition increases are not the answer. I will not let the students become the default financiers of our colleges and universities." 

[Prolonged applause]

The problem with his approach is that apart from online education, he has no alternative to offer.  So unless you think online education will bridge the funding gap, what exactly is "thoughtful change, working with the faculty and the college presidents" supposed to bring about?  

You can hear this segment of Brown's remarks below: