This document presents funding proposals from the Alabama Commission on Higher Education. Individual sections present the following: (1) the executive summary of the 1988-89 Unified Budget Recommendations; (2) a detailed presentation of the Higher Education Unified Budget Recommendations Program for the 1986-87 and 1987-88 appropriations and the 1988-89 requests, needs, and recommendations; (3) the funding formulas used; (4) the funding formula supporting data for senior institutions; (5) the funding formula supporting data for 2-year institutions; (6) the allowances for facilities renewal; and (7) the critical capital needs that exist in Alabama public higher education. Funding recommendations include an increase of approximately 12 percent in total funds available above the 1987-88 appropriation, a large increment of funds to the Network of Alabama Academic Libraries, and a temporary modest increase in funding to Alabama A&M University and Alabama State University. Also targeted for higher funding levels are several scholarship programs. It is noted that these increases are desirable in order to receive the highest federal matches available and to meet the increasing needs of students for financial aid. The Commission also recommends a $1 million increase for the Experimental Program to Stimulate Competitive Research, and funding for four private postsecondary institutions (Marion Military Institute, Sylacauga School of Nursing, Talladega College, and Walker College). (GLR)