Great Britain is in a severe budget crisis, causing more serious problems for higher education than for other sectors of the economy. Cuts have been applied to individual universities and programs unevenly. Dissention within higher education has resulted, and the unique higher education financing system is at the controversy's center. (MSE)

Three opinions are offered: (1) The federal government should be seeking ways of strengthening state, local, and institutional leadership by placing federal resources at the service of state and local agencies. (2) Social policy should not be handled by the states. (3) Keeping a proper balance between local and federal administration requires…

Higher education has made decisions on behalf of government through federal use of the accreditation system, private needs analysis systems, and peer review for allocating program, student aid, and research funds. Noting that these procedures are threatened, the author calls for reform of higher education management to preserve some autonomy. (JT)

ACIR recommends that state legislatures include all federal aid funds in their own appropriations bills, prohibit the expenditure of federal funds in excess of the amount states appropriate themselves, and specify spending priorities by establishing subprogram allocations. Implications of these recommendations are discussed. (LBH)

Analysis of patterns of federal and state spending on student aid, enrollment patterns, and policies that sometimes work at cross-purposes suggests that, although the machinery is in place for an equitable system, the American people must adjust their spending priorities to invest more seriously in the country's human resources. (MSE)