This report focuses on changes affecting all colleges and universities, as well as changes affecting the following institutional types: two- and four-year public institutions and four-year independent institutions. Tables show the results of a survey of 411 colleges and universities concerning academic and administrative practices. Special emphasis is on financial circumstances facing American higher education. Campus administrators describe the short-term impact of recent financial constraints and also identify some potential long-term consequences. Other changes discussed are enrollment, curriculum, faculty hiring, and assessment activities. New information is also given on the use of mechanisms for reviewing academic programs and ensuring their quality. Among the findings are the following: (1) serious and widespread funding problems are present in higher education while enrollment is increasing, especially in response to changing workforce needs; (2) community colleges are experiencing the greatest growth; (3) enrollment trends are growing at most institutions in the part-time, older-than-age-25 and graduate categories; (4) enrollment by traditional-age students is increasing; (5) affordability of college study is a growing problem (60 percent of the institutions reporting an increased number of students requiring full financial support); and (6) American colleges are moving ahead with new initiatives to strengthen undergraduate instruction, enhance educational quality, and provide linkages with foreign universities. Appendices contain the survey questionnaire and technical notes. (GLR)