Legislators are increasing their efforts to insure that appropriations are used prudently and productively. State systems of higher education have not escaped this scrutiny. To be effective, such legislative oversight depends upon clear articulation by state-supported activities of its goals and functions. Nevertheless, like other service industries, higher education must cope with cost increases that often are higher than those of the general economy. These conditions and related developments were discussed in airing the overall theme, "Efficiency and Effectiveness in Higher Education." Discussed were: (1) the issues in recounciling the time-honored commitment of states to institutional autonomy with mounting demands for accountability from the public and others who share responsibility as guardians of higher education; (2) the intricacies and limitations of evaluating faculty; (3) whether faculty workloads should be prescribed; (4) the prospects and worth of academic exploration; and (5) managing fiscal resources in higher education during the present period of rising costs. (Author/KE)