The relationship between state governments and higher education institutions is analyzed, based on findings of research conducted in 25 states. After considering the multiple higher education institutions and their post-World War II development in the various states, the book reviews major studies concerned with state government and college relations. Higher education concerns of state governments that constitute the agenda in the 1980s are considered, and three major types of administrative organization at the state government level are defined: statewide governing board, state coordinating board, and state advisory board. Attention is also directed to the two primary arrangements for full-time professional leadership to state higher education boards. Two basic questions about public higher education that state governments must resolve are also addressed: the differentiation of mission among multiple institutions of higher education and the allocation of available resources among public institutions and public programs. In addition, information is provided about the financing of college and key issues concerning external constraints on academic freedom. Finally, institutional autonomy in relation to state governments is discussed, along with speculation about future relationships. (SW)