The National Association of Independent Colleges and Universities conducted a survey to determine the priority of public policy issues at independent two-year colleges. A questionnaire was sent to presidents of 171 accredited institutions, with a 68% response return. Major findings included the following: (1) Basic Grants, College Work-Study Grants, and Supplemental Educational Opportunity Grants were the priority student financial assistance programs with 90% of the colleges receiving funds; (2) the College Library Assistance Program, Undergraduate Equipment Grants, and Basic Institutional Development Grants were regarded as the three priority federally-funded categorical programs; (3) 78% reported needing grants for construction/renovation, 72% for faculty development, and 68% wanted legislation for direct payments and/or loans to institutions to offset Federal compliance costs; and (4) major difficulties reported in Federal compliance were the expense, report time, bureaucratic red tape, building renovation requirements, and the lack of government understanding of higher education institutions. Of the colleges responding, 58% were church-related, 17% single-sex, 61% primarily residential, 65% primarily liberal arts, and 59% had full-time equivalent enrollments under 500. The questionnaire, list of institutions surveyed, and comparative statistics on funding awards are appended. (RT)