Spurred to action by Governor Thomas H. Kean, New Jersey recently instituted a system of financial incentives for colleges and universities that propose innovative improvements in undergraduate education. An interview with the governor conducted by Frank Newman, the president of the Education Commission of the States, is presented. (MLW)

In a reaction to an article by Chester E. Finn, Jr., it is contended that federal dollars have provided the essential margin that makes for quality and gives institutions more independence. Loss of federal dollars would not be taken up by the states or the private sector. (MLW)

Ronald Reagan's effect on higher education as governor of California and what effect he might have on U.S. colleges and universities if elected president are described. Three points are discussed: deep conservatism of Reagan, his passivity, and Reagan's relative disinterest in higher education. (MLW)

Tennessee's higher education funding based on institutional performance is discussed by three key participant-observers of the state's initiatives: Steve Cobb, Arliss Roaden, and John Folger. Money for remedial education was taken out of university budgets and put in special college preparatory institutes. These institutes are discussed. (MLW)