Virginia's higher education system is reviewed in a state report that provides mission narratives from each of the Commonwealth's state-supported and independent institutions. After a statewide statistical profile, the following issues are discussed: enrollment issues, the emerging role of Virginia's urban universities, teacher education programs, higher education finance in the 1980s, future support for research, and off-campus credit courses and programs. Factors that will influence higher education and the continued development of Virginia's colleges and universities are identified, including: (1) the period of generally stabilizing enrollments, which should be used to consolidate the resources; (2) unnecessary growth and duplication, which can be diminished by reducing expenditures for academic programs with saturated labor markets and by shifting funds and staff; and (3) the rejuvenation of the liberal arts and sciences into energy research and new careers. It is shown that Virginia ranks 22nd in appropriations per capita for higher education but has recorded the 11th greatest gain in appropriations over a ten-year period; average faculty salaries at state-supported colleges and universities are still generally below the U.S. average; and the state-supported system has added almost 70,000 students since 1974. For each of the 39 state-supported and 31 private institutions, information is presented on: its history and development; purpose; extent of the institution's mix of instruction, research, and public service; and future directions to 1990. (CC)