The Maine postsecondary education situation, the state's economy, and their interrelationships are considered. The analysis is based on interviews with leaders of Maine private enterprises, postsecondary institutions, professional and trade union organizations, and state government. An operational model for higher education and economic interaction is also presented, along with recommendations to guide public policy makers and leaders of private and public postsecondary education institutions. Postsecondary institutions are grouped and discussed according to the average length of time necessary to complete degree requirements, and by public versus private ownership. In addition, institutions are differentiated by the proportion of the student body drawn from out of state. Enrollment trends and employment within the public and private colleges are also analyzed. The economy is considered in terms of performance indicators by sectors and by specific commercial and industrial enterprises (e.g., textiles, potato products, banking, high technology). Finally, the condition of each sector of postsecondary education is assessed, along with training/education in state government and the relationship between organized labor and postsecondary education. (SW)