This report describes and analyses state support for higher education in fiscal year 1996. 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, local tax appropriations, and national rankings; and individual state tables showing total state tax appropriations for higher education. The report finds that growth of the national economy has favored state budgets. For the third year, state funding grew with an increase of $1.4 billion in state support in fiscal year 1996. The total amount of state support for higher education now exceeds $44 billion. Regionally, there was a north-south split, with northern states outpaced by gains made by southern states. Increasing tuition continues to be a concern as institutions use this as a means to moderate the impact of declining state support from earlier in the decade. (Contains 19 references.) (JLS)