The current system of financing higher education through public tax support and tax-assisted voluntary giving is being challenged by many individuals and groups. Revisionary proposals include: public-tax support of educational institutions rather than programs, a combination of increased fees and student scholarships, income tax rebates for public-supported tuition and related expenses, and additional state and federal funding. Some administrators of private colleges feel that their institutions will survive only if public institutions become private and are financed by student charges. The next new federal program should be one of "operating support," on a formula basis, to all accredited institutions of higher learning. It must be carefully devised to avoid diminishing, but rather supplement, other and non-federal sources of support such as voluntary gifts and tax funds. Unless the public and private sectors of the academic community agree on what programs would both serve educational purposes and be in the public interest, higher education might continue to have a low priority in state and federal budgets. Higher education would be given greater priority in government financial deliberations if the academic community made a unified and emphatic statement on legitimate educational needs. (WM)