This report is the first in a series by the New Jersey Board of Higher Education in an effort to develop a master plan for higher education in the state. It attempts to ascertain: (1) where the New Jersey higher education system stands at this point in time; and (2) which goals the system must strive to meet. The report contains four sections. Part I discusses the need for planning, the planning process, the situation in the state, and the prerequisites for building a strong higher education system. Part II outlines ten goals for higher education. Part III discusses the environment, including population patterns and trends, the economy, and state support for higher education. Part IV describes the system of higher education in New Jersey: i.e. structure, governance, degrees and professional programs offered, enrollment data, financial aid, library resources, computer resources, and institutional cooperation. Tables, graphs, and illustrations are interspersed throughout the document. Forty-one pages of data are appended. (AF)