Issues concerning the financing of higher education are considered with reference made to Maryland's status. It is suggested that money is a critical issue, that good management is needed to assure the best and wisest use of fiscal resources, and that the fiscal outlook for the future indicates that higher education planners must examine nonproductive or low payoff programs. The money that will be available for new programs in the future will be available through the recycling of existing dollars that are being spent in nonproductive areas. In recent years, state higher education coordinating agencies have played a major staff role in recommending major policy changes. Examples of critical issues in which these agencies have been involved include the approval of new institutions, new programs in existing institutions, and the coordination of an overall, statewide master plan for higher education. It is suggested that tuition charges and other curriculum charges for in-state and out-of-state students and the relationship of these charges to the dollars state and local governments appropriate for higher education must be thoroughly examined. It is projected that private higher educational institutions will demand and receive more state funds. Additionally, innovations in higher education in the late 1970s are viewed as necessary. For instance, higher education may need to utilize vacant dormitories rather than building additional dormitories at another nearby institution. The Maryland Department of Budget and Fiscal Planning relies heavily on the use of the Chase econometric model in projecting the state economy and its revenues. The need is noted, in any state, for higher education officials and budget officers to communicate fully early in the year in the preparation of the budget. (SW)