The proceedings of the 1978 Legislative Work Conference of the Southern Regional Education Board include eight essays on higher education. In the first essay, "Financing Higher Education in the 1980's: Fewer Students, More Dollars?," Lyman A. Glenny outlines nine issues that may affect fixed and variable costs for higher education. In "Public Policy and Private Higher Education," David W. Breneman presents his views on federal and state policies affecting private higher education. He sees possibilities for the South that are effectively unavailable to the rest of the nation. In "The Bakke Decision and State Legislatures," Robert M. O'Neil focuses on implications of the Supreme Court decision for state policymakers. In "Supply and Distribution," Frank A. Sloan outlines some of the policies that have been tried or are being considered by states to influence the distribution of health manpower. In "Supply: Changing the Focus to Health Care Delivery," Gordon H. DeFriese describes several specific programs that states now have in operation and that have promise for delivering health care services to rural areas. Robert R. Martin, a college president turned legislator, and Max Sherman, a legislator turned college president, present their views on higher education in "Capitol and Campus.""Competency Testing's Policy Implications for Teacher Training," by Charles B. Reed, remarks by West Virginia Governor John D. Rockefeller, IV, and remarks by Virginia Governor John N. Dalton are also presented. (SW)