CSU raises the idea of a transfer only system?

The LA Times reports that the CSU system is going to be directly impacted by the focus on the California Community College system's mandate to increase transfers.  Apparently, there may not be money available for both transfers and incoming freshmen.  At least, this is the argument.  The article states:

Could California State University one day limit enrollment to transfers, admitting burgeoning numbers of community college students but turning away new freshmen?
The idea sounds far-fetched, but that scenario was raised Tuesday by trustees who cautioned that insufficient state funding could radically reduce the mission of the nation's largest university system.
The warning came during a discussion of the preliminary 2015-16 budget, which predicted growing demand for the 23-campus system. The Cal State system drew a record 761,000 applications for the fall 2014 term.
After years of budget cuts and enrollment enrollment declines, funding for the Cal State system is increasing under Gov. Jerry Brown's multiyear plan that calls for an additional $119.5 million each for the Cal State and University of California systems in 2015-16.Much of that demand, officials said, is likely to come from community college transfers for two reasons: increased state funding is expected to boost two-year college enrollment by 60,000 students this year, and increased numbers of community college students will earn associate degrees for transfer, which guarantee admission to a Cal State campus.