The Maryland Board for Higher Education's consolidated capital and operating budget for fiscal year 1985 for higher education institutions and agencies is presented. Recommendations of the Board are summarized, and the status of higher education funding is briefly discussed. Methods of funding institutional budget requests for the capital and operating budgets are considered, along with factors that the Board assessed in making its recommendations. Data are included on expenditures by institution for desegregation. Extensive statistical tables for each state college provide information on the following: a comparison of institutional funding requests and Board recommendations; objects of expenditure and revenues by fund source, 1983, 1984, and 1985; percent change in objects of expenditures; expenditures and number of positions by program; actual and estimated headcount enrollment; number of full-time equivalent faculty; faculty scholarly output; number of research projects completed; number and amount of research grants received; number and amount of outstanding National Direct Student Loans; tuition and mandatory charges, number and amount of grants/scholarships and loans for undergraduate and graduate students; library transactions and professional positions; plant operations; and public safety. (SW)