The long-term concerns of colleges and universities have been shifting in recent years. Emphasis is increasingly being placed on the exploitation of all higher education resources through regional or State coordination. Explores the implications of the new priorities in higher education. (Author)

New Jersey abandoned formula funding of higher education in favor of incentive funding combined with base budgeting. State institutions receive basic operating funds and compete for extra monies by planning initiatives for problems on which state leaders want more action. Incentive funding has cost little and improved quality noticeably. (MSE)

The potential for reconciling state formula funding of higher education with institutional planning needs is discussed. It is proposed that states invent a financing mechanism that funds a fair share of the strategic aims of each public college and university, yet allows the state to invest in a few priorities. New Jersey's experiment with such an…

The experience of the University of Maryland system in dealing with statewide cuts in higher education financing is chronicled from 1988, focusing on political influences in the decision-making process, methods used to determine which programs would be cut, and responses to the decisions made. A comparison of four theater programs is offered as an…

Issues of governance, funding mechanisms, and level of service in higher education merit serious attention in a time of reduced resources, but they are more appropriately dealt with after fundamental questions about the changing purpose and contribution of higher education have been examined. (Author/MSE)