This case study concerns the 1992 Maryland legislation which granted St. Mary's College, a Public Honors College, a lump sum budget and exemption from most normal state controls. In return, there was an institutional agreement to cap state tax support at an agreed upon level and to use money from tuition increases to fund low income students. This case study asks what have been the major consequences of a hybrid public/private status, whether the state government yielded to much autonomy to the college, and whether necessary accountability has been lost. Twenty-three interviews were done with 12 participants from within the college and 11 from various branches of Maryland state government. A Middle States Team Report found that student diversity had increased, entering students' grade point averages were higher, faculty quality and diversity had increased, faculty-student ratios were improved, and non-teaching staff reported satisfaction with working conditions. The curriculum received praise for its planning and implementation. Both state officials and college officials have been pleased with the results of the agreement. It appears that the independent governing board has been a key to the success of the agreement and the influence of the current president has also been crucial and this may have impact in the future when there is a change of personnel. (JLS)