This article reports on a new national survey showing that state spending on higher education is continuing to rise throughout most of the nation and growing faster in much of the South. Total state general-fund appropriations for higher education are up by 7 percent, to $72.18-billion, in the current 2006-2007 fiscal year, according to an annual survey conducted by the Center for the Study of Education Policy, at Illinois State University. Fourteen states experienced double-digit increases in their appropriations for higher education, the most since the center began tracking one-year fluctuations in such spending in 1991. Over all, 28 states increased appropriations for higher education by at least 5 percent for 2006-2007. Thirty-eight adopted increases substantially above the rate of inflation at the time their budgets were passed, and only two states, Montana and New Jersey, cut spending, down from four last year and eight the year before.