How did the New York State system of colleges and universities arrive at the brink of fiscal disaster? What is a possible new perception of higher education financing for New York? The radical shift in enrollment from independent to government-sponsored campuses, and the steep escalation in tax-levy burden for higher education resulted in the New York State system of colleges and universities fiscal disaster. Possible ways of maintaining collegiate access are by fuller utilization of capital facilities and by reforming public policies now on the statute books that are aimed at eliminating family economic circumstances as the sole criterion in a college-bound student's institutional choice. While the state system of higher education is essential to its future cultural and economic health, it cannot be allowed to become a hindrance to state fiscal recovery. Public policy in higher education must clearly reflect the job to be done and the most cost-effective way of doing it. (Author/KE)