This report details the findings of the Strategic Plan Steering Committee of the Arkansas Association of Two-Year Colleges (AATYC). The document serves two purposes. First, it makes the case for the potential of two-year colleges in Arkansas to make an impact on the state's students and, in turn, impact the economy. Second, the report lays the groundwork for a statewide strategic plan for two-year colleges to realize that potential. Confronting the poor performance of the state's two-year colleges and the need for change in all levels of administration, support, and instruction, the steering committee recommended the adoption of the following six goals: (1) to meet the needs of business and industry through workforce development; (2) to increase and improve the level of educational attainment for the residents of Arkansas; (3) to develop and implement a formalized funding mechanism for higher education in Arkansas; (4) to collaborate to identify issues and combine/maximize resources; (5) to maintain quality through continuous improvement; and (6) to seek funding from external resources. (Contains 55 references.) (ND)