New directions that state legislatures have taken in regard to accountability in higher education are reviewed, along with the way that the relationship between the legislature and higher education is changing as a result of new developments. In response to public criticism that the legislature is too responsive to pressure groups, does not do its business in public, and does not oversee public agencies adequately, legislatures enacted Sunshine laws, requiring a large part of public business to be conducted in public, and Sunset laws, providing for periodic review (and possible elimination) of public agencies. Management and performance oversight of state agencies has also been expanded, and a variety of new budget systems that are designed to provide more information about, and evaluation of, efficiency of operations have been adopted. Another change in the legislative role that will have implications for higher education is the addition of more legislative staff for policy-making. Traditional expectations of the legislature about higher education and the relation it should have to the legislature include the following: the relationship between the two groups was a personal one, control of higher education was vested in a lay board and was insulated from direct political control, and higher education would prepare people for useful jobs. New expectations or developments include the following: the legislature should exercise oversight over higher education; coordination, regulation, policy-making, and some control of education is necessary at the state level; a coordinated and centralized communication between higher education and the legislature has evolved; and private institutions have become organized in most states. It is suggested that there will be future emphasis on planning policy analysis, evaluation, performance audit, and other formal analytic methods of assisting decision-making. (SW)