A policy statement adopted by the membership of the American Association of State Colleges and Universities at its 1979 annual meeting is presented. Policy guidelines for states based upon the expectations that citizens have of public institutions and the concomitant responsibilities that state governments have to institutions are summarized. The following topics are addressed: state commitment to low-cost, quality public higher education; planning, accountability, and institutional integrity; state regulation and oversight of higher education; public funds for private and proprietary institutions; state reappropriation of federal funds; and academic public service. A list of association members by state is included. (SW)