This report describes and analyzes state support for higher education in fiscal year 1994. The report provides an analysis of funding trends nationwide; a national map showing percentages of 2-year gains for all states; a table showing appropriations amounts by state for the most recent 3 years as well as percentage changes; a table showing state tax appropriations per capita and per $1,000 of personal income, along with national rankings; and individual state tables showing total state tax appropriations for higher education. The report reveals that after 2 especially negative years, support to higher education has turned around in a majority of the states. While the gains reported by states are not huge by comparison, they are impressive in the aggregate, with a near record total of $40.8 billion appropriated to higher education by state governments. The trend in higher education support is not distinctly regional, although a greater proportion of southern states did somewhat better than did northern states. The most positive aspects of state support to higher education are the general levels of support in the 12 "megastates," with the exception of California, and levels of support for community colleges and for student financial aid. (Contains 27 references.) (JDD)