This essay examines the higher education challenges facing the state of Florida in the coming decades, focusing on solutions to demographic, economic, and social issues that may be applicable to other states as well. The state's population has increased substantially since 1950 and continues to increase at a high rate, placing significant demands on public and private higher education. An aversion to tax increases in the state, the low tuition charged by state colleges and universities, and the lack of coordinated educational planning are major factors influencing higher education policy in the state. Florida needs to better utilize private colleges and universities to meet the growing educational needs of its population. Among the conclusions reached are the following: Florida needs to encourage broad public discussion of policy issues facing the state; it must seek greater mission differentiation among institutions, truth-in-pricing of higher education, institutional accountability in regard to learning outcomes, and better coordination between higher education and the business community; public policy must consider the state's independent institutions an integral part of the state system of higher education; and the state must make a greater investment in learning infrastructure. (MDM)