This paper discusses privatization of public higher education, noting that some form of it exists on almost every college campus and that it is part of the wider movement toward less government. Four models of privatization are defined: public production with public finance; public production with private finance; private production with public finance; and private production with private finance. Two are examined here: public production with private finance (increasing support coming from private fundraising) and private production with public finance (deregulation). The report examines: (1) forces behind privatization, including fiscal constraints, current political climate, and declining confidence in higher education; (2) forces and factors that support privatization, including the need for deregulation and increased autonomy, and privatization as the best response to the current political mood; and (3) arguments against further privatization, noting that general funding of public higher education cannot be replaced by private funding, that private sources of revenue come with priorities attached that may not match those of the institution, and that privatization can compromise the historic role and mission of institutions. A final section discusses privatization's impact on the mission and philosophy of the institution or on the state's role in higher education. (Contains 11 references.) (SM)