The proceedings of the 28th annual Legislative Work Conference of the Southern Regional Education Board are presented. Facts and issues surrounding faculty salaries and compensation are discussed in articles by David Spence and Richard Chait. Among trends to emerge from the articles is the fact that faculty salaries in the South have halved the gap between that region and the rest of the nation in the past five years. Senator Pat Frank (Florida) and Gordon Davies discuss access, quality, and competition in graduate education. The articles stress the need for upgrading the quality and concentrating graduate education in urban centers. The Chairman's Address by Governor Bob Graham of Florida focused on a governor's ability to influence state policy and funding decisions about higher education. Robert Stoltz reported in his paper on teacher education and certification that states should adjust their certification procedures and not rely solely on a test at the end of the teacher education program to improve teacher quality. Robert Berdahl reviewed current state developments and offered suggestions for evaluating state coordination and governance. In articles on governor's perspectives on higher education, George Busbee and Julian Carroll emphasized the importance of goal-setting and the need for state officials to work together to arrest declining national productivity. In a paper on vocational/technical education Gene Bottoms suggested several actions for states to improve this area of their educational programs. A roster of delegates is appended. (Author/PHR)