Current and alternative funding methods for higher education in Pennsylvania are reviewed by the Commission on the Financing of Higher Education and recommendations are offered. Areas of concern are: using scarce state resources to improve student access and educational quality; strengthening the diversity of college programs and institutions; promoting better management; and responding to different college missions. After reviewing the legal and historic bases for funding various sectors and schools, attention is directed to the state's past practices, future needs, and higher education's role into the twenty-first century. The 27 recommendations are organized under four themes: pursuit of excellence; student access and participation; economic revitalization; and accountability and management. Both access and college choice are addressed, along with the specific role of the community college system. Specific topics concerning economic revitalization include: college roles in developing an educated work force; the use of college research capabilities to assist industry expansion into new growth areas; and the importance of cooperative relationships among business, industry, colleges, and government. (SW)