The statute [T.C.A. Section 49-7-202(c)(7)] requires the Tennessee Higher Education Commission to prepare a biennial report for the governor and the general assembly, "commenting upon major developments, trends, new policies, budgets and financial considerations which in the judgment of the commission will be useful to the governor and to the general assembly in planning for the sound and adequate development of the state's program of public higher education." The purpose of this report is to provide state policymakers with a brief overview of Tennessee higher education within a regional and national context. This report presents data and analyses on five broad policy issues important to the state: (1) State context of higher education; (2) Student preparation; (3) Student participation; (4) Student progression; and (5) State higher education finance. (Contains 29 figures and 2 footnotes.)