Information, analysis, and commentary are presented in a report that examines the progress and difficulties that states are having in assuming more of a moral and practical leadership role in achieving equity in higher education among minorities. The report discusses the fundamental dilemma states face in trying to foster greater institutional responsiveness to changing demographics. Next, an examination is made of two measures of state or institutional progress towards equity: an estimate of the differences between majority and minority participation rates, and an estimate of differences in graduation rates attributable to the effects of race and ethnicity. The problems of convincing a state's colleges and universities that improving minority participation and graduation rates ought to be high on their agenda are discussed, as well as efforts used to influence them to act, including the predominate use of court-imposed mandates. Finally, suggestions are presented on ways a state can achieve educational equity in its colleges and universities, including the act of making equity a priority, delivering that message clearly, selecting the person best qualified to deliver it, and developing and executing a plan of action. Contains 19 references. (GLR)