The Board of Governors adopted the State University System of Florida's Strategic Plan, 2005-2013 on June 9, 2005. The Board established system goals for 2012-2013 in the following areas: Goal 1: Access to and production of degrees; Goal 2: Meeting statewide professional and workforce needs; Goal 3: Building world-class academic programs and research capacity; and Goal 4: Meeting community needs and fulfilling unique institutional responsibilities. The Board will continue to study ways to create the optimum structure for the university system, including number and location of universities, number and location branches, and number and location of subsystems, reflecting the geographic needs of the state. In establishing the optimum structure, the following questions must be answered: (1) With attention to quality, cost and access, what is the optimal mix of campus models to serve the state, both in satisfying demand and in minimizing cost? (2) What is the fixed, variable and marginal cost differential to meet growth challenges of each model? and (3) How will this growth be financed? The Board has developed and will continue to refine a system that holds universities accountable for: (1) Each institution's contribution to the statewide goals and fulfillment of its individual mission; (2) The efficiency of each institution's operation; and (3) The financial health of each constituent university and the system. The measures adopted by the Board of Governors Accountability Committee address these three areas and are included in Appendix 1. Through its legislative budget request process, the Board has begun linking its strategic goals to funding requests, and will work to further reinforce this connection in future requests. Challenges the system will face as it works to achieve its goals include: (I) balancing institutional supply and student and employer demands; (II) ensuring geographic access; (III) competing internationally with other institutions and systems; and (IV) recruiting faculty and students. Florida also has many advantages, or "opportunities," to support ambitious goals for the State University System in demographics; rising student achievement and interest in Florida public higher education; state quality of life and growing economy; and efficient and improving universities. Appendix 2 presents the Y-axis goals methodology. [This report was produced by the Florida Board of Governors.]