This report presents comparative data governing the financing of public higher education in each state and the District of Columbia. The model used in data analysis involves the following nine data elements: population, number of high school graduates, public full-time equivalent enrollment, taxable resources, tax revenue collected, state and local government education appropriations, net tuition revenues, personal disposable income, and the system support index. The first chapter explains the purpose of the report and its focus on government funding of public systems. Chapter 2 presents the finance model used in data analysis, as well as the five-step state study procedure. A master table of state ranking positions for state support of public higher education for 1997-98 is presented. Chapter 3 displays national historical data in graphs and tables and a sample state historical analysis. It argues that trends in public policy are better indicators of the true well-being of education financing than current performance rankings. There are three appendices. The first provides technical information, including definitions and reporting instructions. The second offers additional state information provided by state higher education finance officers, and the third is a directory of state higher education finance officers. (Contains 62 references.) (DB)