This document, a report to the 64th Texas Legislature on the state of Texas higher education, emphasizes structure, governance, student enrollments, availability of educational opportunity, faculty and staff, facilities, financing higher education, and student costs and student assistance. Recommendations suggest that: (1) No new public senior or upper-level college or university or professional school be authorized by the Legislature, nor should any existing upper-level institution or community junior college be authorized to expand into a 4-year institution. (2) Establishment of community colleges in those regions of the state where statutory and Board criteria for establishment of community colleges can be met. (3) No additional state-funded occupational centers be authorized. (4) Coordinating Board continue to develop procedures for statewide and regional planning and coordination. (5) The concept of the Academic Common Market of the Southern Regional Education Board be passed by legislation thus enabling Texas institutions to participate in the program. (MJM)