This study analyzes the current condition of higher education in Oregon, presents a conceptual framework for a voucher system alternative, and within this framework outlines a proposed voucher system for Oregon. The authors focus on three problems in higher education: (1) the need for relevance, (2) the financial crisis, and (3) inequality of opportunity. The writers contend that a voucher plan provides a more efficient allocation of resources, gives institutions as incentive to provide schooling more closely tied to current social and economic conditions, encourages poor and minority students to continue their education, and allows private institutions to compete more easily with public institutions. (RA)