A new master plan for higher education in Florida is presented which focuses on the central challenges facing the state and its higher education institutions. The following sections address three key challenges and suggest strategies to help policymakers and governing boards promote positive change. The section on the challenge of improved use of educational resources addresses increased productivity despite limited resources, the necessity of educating more students, and issues of quality, access, and interdependence between institutions. The next section addresses the challenge of economic and human resource development to ensure Florida's competitive place in the world economy and the need to meet the needs of the state's diverse population. The challenge of flexible management is addressed in the third section which argues that postsecondary education cannot expect growth in per student funding to match the increasing demands and costs of quality postsecondary education. Thus new flexible management models for cost reduction, resource allocation, and revenue enhancement must be designed and implemented. A 73-page "Supplement," separately published at the same time as the plan itself, and appended here, provides an extended picture of the advice, research, testimony, and discussion that contributed to the Plan's development, beginning with excerpts from the experts who contributed to the 'Preliminary Scan" with which the planning process began, followed by major demographic indicators that outline the context in which Florida and the "Master Plan" must operate. Each of the major challenges outlined in the Plan is addressed in the supplement in greater detail with statistical documentation, specific strategies, and where appropriate, examples of promising practices. These are (1) productivity, (2) interdependence, (3) economic development, (4) diversity, and (5) finance, pricing, and incentives. Appendixes to the supplement include a list of those individuals who actively assisted in the development of the Master Plan through committee meeting participation, written or verbal testimony, expert opinions, or corrections to preliminary drafts. Also included is a list of the goals adopted under "Blueprint 2000" and a list of Commission reports. (JB)