This project--funded by The Pew Charitable Trusts--is an effort to address the performance of state higher education systems, and the public sectors within them, relative to their levels of funding. The measure used for funding and those used for performance are described. The data used throughout this study were compiled and analyzed to answer the following questions: (1) Are there states and public sectors within states performing at high levels with relatively low levels of funding?; (2) Are there distinguishing characteristics (e.g., mix of academic programs, characteristics of students, faculty and staff, etc.) between sectors of public institutions that perform very differently despite being similarly funded? Or between sectors that perform essentially the same with very different levels of funding?; and (3) Are there external factors (largely outside the control of higher education) that influence performance relative to funding? Findings reveal that not all institutions need more resources, some can perform better with what they have, and some can maintain or improve performance with fewer resources. These considerations are rarely addressed in the complex and politically charged environment of higher education finance; when they are, they are usually statements of opinion without supporting data. This project is an initial attempt to provide supporting evidence for these discussions. Appendices include: (1) FTE Student Calculations, Outcome Measures, In-Depth Analysis, and Correlates and Performance Data; and (2) Performance Data. (Contains 27 figures.)