The higher education appropriations cycle in Michigan is described with focus on whether the present system is fair and equitable. Two general conclusions are drawn: (1) There is strong evidence that the present system of allocating state funds for the operation of higher education institutions is not equitable in terms of support for comparable programs, and that these inequities are reflected in a higher proportion of operating costs borne by the student at some state colleges and universities. (2) The trends in state support for higher education institutions over the past few years have led to a decreased level of support in proportion to other states, and resulted in an increase in the amount and proportion of costs to the student. A continuation of these trends will result in a further curtailment of programs and services, and continued increases in cost to the student at a disproportionate rate. (Author/LBH)