An annual report of the conditions of higher education in the United States for 1986-1987 is presented. The 16 sub-sections are as follows: (1) introduction; (2) principal sectors of higher education (four papers, on research universities, liberal arts colleges, community colleges, and state colleges); (3) issues (15 papers, e.g. academic cullture, faculty development, black colleges, international programs); (4) statistics; (5) people (Ernest L. Boyer; new college and university presidents); (6) speeches and documents (four speeches, e.g., speech to the Harvard Alumni Association, September 6, 1986, by Derek Bok and three presentations by William J. Bennett; five documents, e.g. Carnegie Foundation's "Report on Colleges"); (7) lists and rankings (e.g. largest institutions, sources of research funds, and "Most Effective College Presidents," by Liz McMillan); (8) collective bargaining; (9) corporate aid to education; (10) selected state reports on higher education (Arkansas, Connecticut, Kentucky, Mississippi, New York, Oklahoma, Tennessee, Texas, Utah, West Virginia); (11) major court decisions affecting colleges and universities 1986 (19 examples, e.g. faculty contracts, letters promising tenure); (12) campus and community: Boston University; (13) centenaries and anniversaries; (14) institution changes; (15) bibliography; and (16) index. Tables are included. Contains approximately 300 references. (SM)