This case study, part of the State Structures for the Governance of Higher Education study, focuses on governance and related issues in Texas's higher education system. The study's overall purpose was to examine differences among states in their governance structures, and to determine if differences in performance were related to governing structures and whether structure affects strategies of state policymakers. The study is based on analysis of documents and on interviews conducted in 1995 with state officials, education administrators, faculty, and staff. The first section provides information on the state's political culture and higher education issues. Section 2 examines the characteristics of the Texas higher education system, including the system's history, the role of the Texas Higher Education Coordinating Board, community and technical colleges, public universities, tuition, independent higher education, and student financial aid. Section 3 examines the coordinating processes in the Texas higher education system. These include budgeting, planning, system articulation, information collection, the Texas Academic Skills Program, and research funding programs. A final section of concluding observations focuses on the role of the Coordinating Board. Appended is a list of national advisory committee members. (Contains 27 references.) (DB)