Policy recommendations regarding free tuition for the City University of New York (CUNY) as proposed by the Committee for Public Higher Education, (CPHE), and a research report by Richard Rothbard, are presented. Based on Rothbard's investigation, "The Cost of Tuition: A Study of the City University of New York," CPHE recommends the restoration of a free tuition policy for CUNY through the appropriation of $16 million to students to cover all tuition charges on full-time undergraduates that are not otherwise reimbursed through tuition-related financial aid (Pell grants or Tuition Assistance Program grants). The Rothbard research report includes a literature review of tuition and financing of higher education, a history of the university, a review of the financing of the university's budget over the past several years, cost analysis of student aid programs, and information on the study and its findings. The 1979-1980 academic year was selected as the test period, and it was determined that total tuition revenue was $93.8 million, which represented additional revenue of $82.7 million. Costs for financial aid and administrative expenses that did not exist prior to imposition of tuition were determined. For the $82.7 million in additional revenue generated, at least $99 million had to be expended, and the bulk of these costs were borne by the state and federal governments ($58 and $40 million, respectively). In 1979-1980, CUNY's expenditures outweighed its tuition revenues by $17.2 million, or $1.20 was spent for every $1 generated in tuition. The City reaped at least a $205 million windfall between 1976-1977, when tuition was implemented, and 1979-1980, because tuition revenue was used as a substitute for City aid. A bibliography and press releases about the findings are included. (SW)