This report presents the results of a review of state funding for research and public service in the Florida State University System (SUS), focusing on the policy basis for research and public service, the types of SUS research and public service programs and their sources of funding, funding approaches used by other states, expenditure patterns of current SUS programs, and SUS accountability measures. It recommends that the Board of Regents of the SUS should: (1) review the definition of research and public service; (2) rely on more effective measures to assure appropriate emphasis on instruction; (3) develop and maintain system-level management reports; (4) identify problems in research and public service funding; (5) provide guidelines to each university regarding faculty time devoted to research and public service; (6) consolidate funding requests; (7) develop a system-wide definition of what constitutes service to the public schools; (8) develop measures for research and public service; (9) separate visibility for research and public service; and (10) work with the state legislature to de-couple funding provisions for research and public service programs from instructional cost factors. (MDM)