The First Condition Report provided policymakers and the general public a snapshot of where Ohio stands in providing the higher education services Ohio needs to be competitive in today's world. This Second Report focuses on facilities and technology. Five questions form the core of The Condition Report. These are: (1) Are Ohio's higher education facilities adequate to address the needs of and attract students for the 21st century? (2) What is the condition of facilities, and are adequate investments being made to protect the state's assets and benefit students? (3) Can recent trends in funding higher education capital projects, including institutional debt, continue? (4) Do current rules, regulations and practices inhibit the cost effectiveness of facilities construction? and (5) How is technology being used to serve current and prospective students? In assessing the current condition of higher education's facility and technology infrastructure, this report concludes that Ohio's substantial facility and technological assets must be utilized to a greater extent and in different ways than in the past. Trustee stewardship of facility assets are applauded, but larger investments are needed to address deferred maintenance, technology upgrades, building retrofits, and new facilities needed to accommodate program expansions for science, technology, engineering, math and health professions. Debt levels are a concern for some institutions, and current trends cannot continue. Ohio must explore new funding streams and strategies to support its debt issuance. Greater collaboration among institutions, business and industry, and other state services can result in greater cost effectiveness among institutions. State regulations, particularly in construction, can be modified in ways that result in high quality facilities at a lower cost. A statewide common IT infrastructure that focuses on shared services is an opportunity to deliver new programs in more locations and effect efficiencies. Ohio must expand its online learning. Appended to this report is FY 2007 Financial Ratio Analysis: Institutional Ratios and Scores.