A review of higher education in Alaska during 1975-1976 that was submitted to the Alaska Legislative Subcommittee on Higher Education is presented. Information is given on: developments at private institutions (Alaska Methodist University and Sheldon Jackson College); the University of Alaska System; consortium arrangements; postsecondary needs for rural Alaska; the Alaska Commission on Postsecondary Education; Alaska community colleges; and the delivery of education by new technology. Specific topics include: library needs at the University of Alaska at Ankorage, needs for legal education in Alaska, administrative organization of higher education in Alaska, and funding of community colleges. Funding issues for community colleges are considered in depth, including the influences that determine funding and funding processes and 34 recommendations. Approaches that might be used to improve the entire funding and budget operation of community colleges in Alaska are also addressed. One recommendation is that the budget process and forms should indicate clearly for what purposes, programs, and functions funds are being requested and the changes from the previous budget request. More funding must be provided to equip and enrich the existing programs; tuition for community college students should be abolished; and studies should be conducted to determine the feasibility of a central organization for community college administration that is separate from that of the University of Alaska at Fairbanks. The text of legislation for the state to purchase the property of Alaska Methodist University is appended. (SW)