The role of the state government in higher education assessment is clearly expanding as both the state's interest and investment in higher education grows. Currently, patterns of state involvement vary widely--from indirect incentive programs to direct legislation or regulatory action. Institutional assessment and the resulting reform must be designed and carried out by the faculty and administration of that institution; however, assessment must be required, stimulated, and rewarded by the state. As a result, patterns of institutional assessment will vary. Nonetheless, there should be significant formative as well as summative elements. Funding of research on assessment is also recommended. Whatever the pattern of state assessment, it must preserve and enhance the richness and variety of American higher education. (GDC)