Innovative financial strategies for higher education institutions are considered in three articles based on presentations to a national conference at the University of Arizona. In "Innovations in State Level Formulas: Established and Emerging Trends," Dennis P. Jones discusses both the general (multi-purpose) and the special purpose components of state-level resource allocation. General purposes that apply to most public institutions include: access to education, economic development, maintenance and enhancement of the system, and efficiency. Barbara S. Uehling's article, "Adapting Academia to the Prevailing Climate," considers the need for colleges to make adaptations to changing conditions, the type of decision-making that is necessary for adaptive change, and conditions that can be established to continue the process of adaptive change. The final article, "New Financing Strategies for Higher Education," by Anthony W. Morgan discusses economic challenges facing higher education and new financing strategies for allocating funds. Two sets of root assumptions are presented along with some of the resource allocation models and strategies that flow from them. The allocation models include: goal models, investment models, cost reimbursement or formula budget models, market models, and incentive models. (SW)