This timely report focuses on accountability -- the current lingua franca of higher education -- and the question of the public trust as a reflection of the respect and confidence of the people that are served by the nation's colleges and universities. Designed to assist policymakers and educational leaders, the report identifies the components of a state-level higher education accountability system: acting on a public agenda, maintaining the public trust of the people served by higher education, instituting well-conceived and meaningful performance indicators, and enabling data-driven decision making are each considered essential for engaging all stakeholders in a state's higher education accountability system. Elected officials, members of the higher education system, and stakeholders all must work in partnership with one another to carry out their respective roles. The report also highlights public trust and its import as it relates to policymaking and higher education. Appended are: (1) Illustrative State Programs; (2) Performance indicators used in several states; (3) Selected performance measures in other countries; and (4) Definitions. (Contains 1 figure and 158 footnotes.)