This paper presents the State Governance Action Report for 2007. Compiled in this report are state policy developments, including legislation, commissions, and studies, affecting the structure, responsibilities, and operations of public higher education governing boards and institutionally related foundations. Governance and governance-related issues are at the forefront of higher education policy debates in several states. Some boards, particularly those with statewide responsibilities, have made addressing state needs an internal priority. Ethics was also a focal point in some states, as improprieties at the University of Medicine and Dentistry of New Jersey (UMDNJ) and Alabama's two-year college system led to the evaluation of governance at both institutions. The 2006 elections provided an opportunity for substantial changes to higher education governance in several states through both ballot initiatives and governor's races. Several governor's campaign platforms and initial actions also addressed the importance of higher education governance. As always, tuition is a hot political issue for state policymakers.