New directions that state legislatures have taken in regard to accountability in higher education are reviewed, along with the way that the relationship between the legislature and higher education is changing as a result of new developments. In response to public criticism that the legislature is too responsive to pressure groups, does not do its…

In view of increasing financial pressures, this paper argues that a new approach to fiscal policy and to the structure of the financial relationship between state government and institutions of higher education is needed. A proposed three-part budget would include the following: (1) a base or core lump-sum budget managed by higher education…