The financial position of Ontario universities is assessed relative to that of comparable U.S. institutions. To maintain and sustain Ontario's universities and thereby maintain and sustain Ontario's competitive position in today's global economy requires a significant financial investment. This study focuses primarily on 10 doctoral-level institutions in Ontario and about 250 in the United States offering doctoral programs across a range of academic disciplines. Data for 1985-86 for public and private institutions in the United States are presented both separately and in a combined format. The study shows that university revenues vary widely by source and magnitude between Canadian and U.S. institutions, and, among the latter, between private and public universities. American universities received far more revenue in 1985-86 than Ontario universities, and U.S. universities also spent more money. By American standards, higher education in Ontario is significantly underfunded. In terms of competitive position of Ontario universities, recent evidence suggests a significant upward trend in the level of support for higher education in the United States. This trend is not matched in Ontario. Between 1982-83 and 1986-87, grants per student in Ontario have barely kept pace with inflation. An appendix is data sources and conversion. Contains 10 tables and 7 figures. (SM)