The purpose of this study was to examine the conditions, financial and otherwise, of New York State's private institutions of higher education, and to recommend measures the state can take to preserve the strength and vitality of these institutions without infringing on their freedom. After a brief review of the history of New York private institutions, their present conditions are discussed: finances; management, with some indication that large universities seem to be in worse condition than smaller ones partly because of shortcomings in management, control, and planning; the impact of the Scholar Incentive Program which has not proved to be of significant benefit to private institutions; enrollment, which continues to rise, though not as rapidly as in the public sector; and their planning effort, which includes the role of the Regents with respect to statewide planning and coordination. Recommendations follow on: (1) improving statewide planning and coordination; and (2) the need for limited direct state aid to private institutions. The constitutional question is considered, the conditions for state support suggested, and an aid program proposed. The appendices include numerous tables with statistical and financial data. (AF)