This report, sponsored by a coalition of District of Columbia-based higher education associations and public higher education systems, examines a wide range of faculty employment policies. The project was undertaken to encourage a proactive approach to preparing the higher education workforce for the 21st century and to address concerns of parents, students, and policymakers about the efficiency, effectiveness, and affordability of public higher education institutions. The report is organized under three broad categories: (1) faculty employment, including terms of employment (tenure and nontenure track, probationary periods, contracts, compensation, faculty tasks), recruitment and diversity, and separations (retirement, layoffs, separation for cause); (2) faculty development and faculty reward structures (tenure and promotion, awards and incentives, sabbaticals, instructional technology); and (3) faculty review policies. Each section looks at the current range of policies, takes notes of public perceptions, and offers a number of policy recommendations. In all, the report makes 49 policy recommendations, which are separately appended to the report. (Contains approximately 180 references, organized by topic.) (CH)