A review of the literature concerning educational finance, taxation, and California's Proposition 13 (1978) reveals that educational institutions encountered financial pressures before the passage of Proposition 13, and that these pressures--hardly specific to California--are highly visible in the South Carolina Technical Education System. The diminishing popularity of education began during the middle 1960's and was reinforced by the onset of depressed economic conditions in the 1970's. As a result, this decade saw declining enrollments, austerity in budgeting, retrenchment policies, and increased tuition rates. Although no tax limitation measures were passed in South Carolina, state taxpayers and legislators developed a marked appropriation frugality. A new governor gave priority to budget limitations, and while the 1979 appropriations to the Technical Education System were up $3 million from 1978, mandated increases caused a $765,327 net loss. Piedmont Technical College, in particular, was underfunded $150,000 and suffered a 12% decrease in local support. To meet this challenge, Piedmont, as well as other institutions, should institute long-range contingency planning efforts that combine budgeting and planning functions to select areas for expenditure reductions. In addition, colleges should lobby for legislative funding and win popular support by demonstrating operational efficiency. (Author/JP)