Major issues facing higher education in Michigan and future trends and demographics are addressed in this 1984 progress report. Attention is directed to the following issues: coordination and communication between educational sectors, particularly regarding admissions standards; precollegiate education; the quality of undergraduate education; tuition at state institutions; the level and mix of institutional and student financial aid programs; the amount of revenue needed to maximize affordability and access; improving support services, programs, and policies to promote access of women, minorities, handicapped persons, and adult learners; occupational supply and demand; the distribution of programs across all degree and course levels; ways in which business/education/government linkages can be facilitated and the role of higher education in promoting Michigan's economic development; state funding for higher education; and roles and missions of each institution and sector. Three critical system issues are also addressed: establishment of a comprehensive statewide uniform database for higher education, the development of a strategic planning mechanism, and development of strategies to reduce and refocus the system. Economic trends, enrollment projections, economic assumptions, and trends in state spending are reviewed. The executive order establishing the Governor's Commission is included. (SW)