This qualitative study explored the state appropriation process and development of budgeting priorities for colleges and universities. In addition, this study explored coordinating board member perceptions of higher education funding priorities regarding state appropriations in Virginia. Focus groups, observations, and an analysis of documents were the sources of data for the study. Findings of this study revealed contributors to higher education funding priorities were strong leadership, consensus and relationship building, and information accuracy. In addition, state funding outcomes for higher education were determined by economic cycles, rather than political party control. Research recommendations included a continued investigation of the phenomenon through a more diverse participant group such as legislators and elected officials, a case study on successful higher education funding outcomes over an extended period of time, a comparative study between multiple politically liberal and conservative states regarding state-level funding priorities for higher education, and a comparative study of funding priority differences between coordinating boards and institutional governing boards. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]