The ninth edition of an annual report on state tax support of higher education documents a total for 50 states for 1968 that surpassed $5 billion. Despite large sums and percentage increases, however, public higher education is not receiving the support it needs to keep up with rising costs and demands. Enrollments, in particular, will probably double in 1970-80 as they have in 1960-70. Since 70% of 1968 enrollments are in public universities, the public sector will bear the brunt of further increases. To explore the effect of financial shortages, a survey of the 100 members of the National Association of State Universities and Land-Grant Colleges was conducted. Throughout the 61 responses rang the warning that it will become ever harder for institutions to catch up and compensate for years of reduction, delay and neglect. The major reasons cited for growing budget requests were expansion, inflation and salaries. A majority of institutions also listed needs for new programs, projects and facilities. Survey institutions said that inadequate financing threatens quality and opportunity, and because of enrollment growth and expansion, the lack of capital for facilities is a critical problem. Every institution reported that their state appropriation was less than the university request. But if states update their revenue systems, it is within their capacity to provide the funds necessary for economic growth and for a wise and humane citizenship. (JS)