The Coordinating Commission for Postsecondary Education is directed by the Nebraska Constitution, Article VII, Section 14(3) to "review and modify, if needed to promote compliance and consistency with the "Comprehensive Statewide Plan" and prevent unnecessary duplication, the budget requests of the governing boards" prior to the budget requests being submitted to the Governor and Legislature. The Commission develops its recommendations based largely on information provided by the institutions. As required by statute, the Commission will address statewide funding issues, review continuation requests and focus on new and expanded programs in its budget review and recommendations. This paper contains an overview of the status of Nebraska public higher education, the Commission's analysis of statewide funding issues and its related recommendations, and the Commission's analysis and recommendations on institutional requests for new and expanded funding. Appended are: (1) State Funding of Higher Education; (2) College Continuation Rate; (3) Expenditures by Category and FTE; (4) Federally Financed R&D Expenditures 2005-06, University of Nebraska; (5) State Appropriated Dollars per Degree Conferred; (6) Community College Academic Transfer Enrollments; (7) Facility Maintenance Expenditures; (8) University of Nebraska--Examples of Program of Excellence; (9) Projecting Jobs and Education Requirements through 2018; (10) Community College Funding Formula; and (11) Funding Sources for Community Colleges. (Contains 2 charts.)