Since 2003, the State Higher Education Executive Officers Association (SHEEO) has produced the annual State Higher Education Finance (SHEF) report to broaden understanding and enable analysis of state-level and national funding and enrollment trends over time. The final section in each SHEF report has focused on the effort and capacity of states to fund higher education. While this information provides valuable state comparisons, publicly available data from the federal government are needed to calculate the state effort and capacity metrics. The federal data lag the SHEF report data by one or two years, making the state effort and capacity section somewhat detached from the rest of the report, as the reporting years have not matched. With the SHEF report's overall expansion for fiscal year 2020, SHEEO has decided to turn the state effort and capacity section into a new, separate report. The State Effort and Capacity to Fund Higher Education report will continue to report the same capacity and effort metrics that were in the SHEF report and should look familiar to long-time SHEF readers. [A fully interactive version of this report, with adjustable visualizations and downloadable datasets for all figures and tables, is available at shef.sheeo.org/state-effort.]