Trends in state higher education funding over a 20-year period from 1969 to 1989 were studied. The four analysis objectives were to: examine aggregate state tax appropriations for higher education annually from 1969 to 1989 in the 50 states; analyze state tax appropriations in each state on a per capita basis; compare state tax appropriations per capita in current dollars and in constant dollars for 1977-78 and 1987-88; and analyze measures of elasticity for the 1969-79 decade, the 1979-89 decade, and the 20 years as a whole. Study results show the decade of the 1970s stands in marked contrast to the 1980s. It was characterized by remarkable growth in higher education. The 1980s were characterized by fiscal stringency and annual percentage gains which are closer to increases in inflation. Over the 20-year period, there was an annual mean gain of 10.4% for the nation. Regional patterns, per capita appropriations, regional cost of living adjustments, elasticity measures, and explanations for changes in support (regional variations and the availability of revenue) are discussed. An Illinois case study is described that shows an inadequate level of state funding of higher education. Appended are a series of tables and graphs and calculations of elasticity measures. Contains 13 references. (SM)