Responding to one of the major recommendations in THE NEGRO AND HIGHER EDUCATION IN THE SOUTH--that special financial support be provided for predominantly Negro colleges and universities in order to forge a single high quality system of higher education for the South--the Southern Regional Education Board appointed a task force to examine closely and report concisely on the needs of these institutions and possible methods of satisfying them. This report of that task force: offers a rationale to support the thesis that traditionally Negro institutions of higher education should be awarded special and basic operating funds to meet evolving needs of society and to prepare students for expanding employment opportunities; indicates the financial dimensions of the needs which must be met to end dual standards of academic accomplishment; and suggests alternative procedures for determining the amount of special funding required by a particular university or college. (JS)