Massachusetts, Connecticut, and New York face giant deficits in their state budgets. The financial impact of the 1986 federal tax reform law was underestimated by colleges and income estimates were overly optimistic for 1988 and 1989. Unpopular, new taxes are seen as the way to solve the budget crunch. (MLW)

For each of the 50 states, the outlook for higher education in the state legislature in 1992 is outlined. Information includes the date of the legislative session, budget request for higher education, prospects for the request, nonbudget issues likely to be considered, and issues specific to private colleges. (MSE)

The legislative outlook for higher education is summarized state by state. Appropriations requests show the amount sought by state-wide coordinating boards or by individual college and university systems, not by governors. All appropriations requests are for operating expenses of the 1989-1990 fiscal and academic years. (MLW)

The summer drought, the oil-market slump, and the desire for political popularity are among the causes for state financial problems. A report by the National Governors' Association and the National Association of State Budget Officers found that in 1987, the amount of money left in general-fund accounts was at its lowest point in 12 years. (MLW)