This eighth edition of an annual report on state tax support of higher education documents an increase in appropriations from $1.4 billion in 1959-60 to $4.4 billion in 1967-68. Despite the large sums involved and the percentage increases, however, the states have not generally kept up with the increasing responsibilities placed on public higher education. While annual operating costs rise faster than enrollment, the rapid growth in enrollment has been a major contributor to the unprecedented financial and other demands faced by higher education. Also contributing to higher operating costs are: continuing inflation, rising faculty salaries, the knowledge explosion with its implications for curricula and staffing, and the flood of new costly but necessary apparatus and equipment. The report covers only appropriations of state tax funds for operating expenses of institutions and does not include appropriations for buildings and other capital outlays. The appropriations include support for instructional programs, research (including agricultural and engineering experiment stations), and a great many public services, such as general extension, adult education programs, etc. The data are derived from the month-by-month and year-by-year operation of "Grapevine," a small monthly newsletter circulated to key persons in each of the 50 states. (JS)