The recent growth and current status of the State of Washington's system of higher education are discussed. After a description of the institution's delivery of higher education services, Washington's social, cultural, and economic background are briefly considered. The prevailing governance structure is discussed in the context of a recent historical sketch. The types of intervention available to state government are examined and their application in Washington is illustrated. The way that continued collaboration among agencies and institutions may serve to sustain the fiscal support of higher education is considered. Five propositions are advanced: (1) that the political environment has become more difficult at a time when leadership from the institution has faltered; (2) that within state government, significant shifts of power have taken place in recent years with far more formal and informal influence moving from the executive offices to legislative committees that are supported by increasing numbers of staff; (3) that the influence of the legislature and the agencies serving it on institutional operations is likely to increase even further; (4) that the increasing competitiveness among institutions for markets, unless voluntarily checked, will lead first to increased ad hoc interventions by the legislature and eventually to more governance from centralized agencies; and (5) that while little institutional latitude has as yet been lost, the potential for decline is great. (SW)