In this policy statement adopted by the Vermont Higher Education Planning Commission, the cultural and economic benefits of higher education to the state are discussed. A growing financial problem affecting student access and the health of both public and private institutions is identified. Declining state financial support of higher education as compared to other states' per capita appropriations and as a percent of Vermont's state budget are outlined. Four policy recommendations are presented: (1) to restore higher education's portion of the state general fund budget to 15 percent; (2) to stabilize in-state tuition at the state colleges and university; (3) to increase the average student grant awarded by the state student assistance agency; and (4) to fund a private tuition-differential grant program under which a student could be awarded a grant to cover up to one-half the public-private tuition difference to attend a private Vermont college. The policy statement is supported by tables showing enrollment trends, per capita tax support, high school graduates' plans, and trends in state appropriations. (Author/LBH)