Economic decline is indicated by productivity per man-hour of work, per capita real personal income, and real gross national product. Unless new technology overcomes the force of a stable population and develops new sources of raw materials and of energy, economic decline seems a likely possibility. Creative management is a process of planning, technology, and leadership, and ought to be both innovative and constructive. The role of state governments in higher education provides the particular focus of this discussion because of the state government's involvement with publicly sponsored colleges and universities intended to meet the educational needs of the state, control of programs at these institutions, control of the general financing and support, state student financial assistance programs, and the setting of state standards that have to be met by private institutions. Each of these functions allows for a great deal of creative management in areas such as attracting the nontraditional student in an era of otherwise declining enrollments. The state governments are in a strong position of influence and are able to motivate changes in attitudes and behavior within individual colleges and universities. (JMF)