Public and independent colleges and universities are facing a fiscal and demographic crisis that has significant long-term implications. State revenue shortfalls are resulting in cuts for higher education as enrollments of traditional and nontraditional students are rising. This creates a double whammy situation: the challenge of doing more for many more with much less. All this must be accomplished while maintaining the integrity and value of the U.S. higher education system. The 1,600 private colleges and universities in the United States are also being hit with another twist. Some high-profile institutions have large endowments, but most independent schools have modest resources and rely heavily on tuition income to make ends meet. When a stumbling economy causes parents and prospective students to choose a public college over a private one, the already slim operating margin of the private school can narrow precipitously. Thus far, responses include: (1) raising tuition; (2) delaying capital outlays; (3) redirecting special revenues to general fund accounts; (4) postponing scheduled tax cuts; (5) increasing employee contributions to their health plans; (6) eliminating programs; (7) sweetening incentives for early retirements; and (8) laying off employees. Public and private institutions, small and large, wealthy and not-so-wealthy have all instituted one or more of these strategies. (Contains 23 references.) (SLD)