This annual report on the status of Missouri's system of higher education is organized around five strategic initiatives. The report notes such positive trends as the more than 325,000 students who are pursuing degree programs and the nearly 50,000 students who graduate each year from the state's public and independent colleges, universities, and private career schools, and the fact that students are reporting higher levels of satisfaction with their collegiate experience than they did three years ago. The report also identifies challenges, finding that financial access to a public higher education has become increasingly difficult, with nearly 19 percent of Missouri's youth financially at risk of not being able to continue their education after high school. The bulk of the report uses text, graphs, and charts to examine achievements and challenges concerning strategic initiatives in the following five areas: (1) institutional mission review and enhancement; (2) coordination of all student financial assistance programs and services in one division; (3) telecommunications-based delivery system; (4) postsecondary technical education; and (5) funding for results. Appendices provide additional information about academic affairs, higher education funding, higher education legislation, higher education statistics, planning and policy development, and the proprietary school certification program. (DB)