This report presents results of a study investigating the process used by the Board of Regents (BOR) for developing its legislative budget request, as well as the process used by the BOR for allocating appropriations among the universities. The report also includes an assessment of the extent to which funds are allocated on an equitable basis for comparable programs across the State University System (SUS), including the special unit entities. The three major components of the study are as follows: (1) Operating Budget: Comparison of Generation Formulas Used by the SUS and the Legislature; (2) Operating Budget: Equity of the Allocation Among the Nine Universities and the Special Units; and (3) Capital Outlay Budget; the report contains separate chapters on each of these topics as well as other related issues. In addition, recommendations are presented for the BOR, the Postsecondary Education Planning Commission, and the Florida Legislature to consider as they refine the SUS funding process. Appendices contain an historical analysis of funding variations; tables showing summary allocations of appropriations of fiscal years 1981, 1986, and 1991, by university, allocation component and student; and a list of the differential treatment of universities based on policies in the simulated allocation of 1990-1991 education and general appropriation. (GLR)