This report presents recommendations of the New Mexico Commission on Higher Education for capital projects for fiscal year 1998-99 in New Mexico's public four-year and two-year postsecondary institutions, vocational-technical institutes, and constitutional special schools (for the deaf, the visually handicapped, and the New Mexico Military Institute). The recommendations were culled from 102 separate institutional requests totaling $292.5 million. The final recommendations totaling $74.2 million, for projects of "significant need," and an additional $57.4 million for six projects in the "needed" category. The first section of this report begins with an overview of the policy framework; it is followed by a summary of higher education capital issues and extended learning issues, a summary of student enrollment data, and summaries of requests and recommendations. Additional sections present the final recommendations in priority order, including a description of each project noting both the institution's request, the final recommended funding level, and budget breakdowns. Presented separately are recommendations in priority order for projects funded by the extended learning fund. A map of the New Mexico extended learning infrastructure is also included. (DB)