A governor's perspective on higher education suggests that government needs to assure itself that the activities it funds are effective in achieving their goals, that college management practices are efficient, that postsecondary education is equally accessible to all citizens, and that excellence in higher education is achieved. Additional issues include the following: the need for information concerning labor market requirements for graduate-level educated persons; mechanisms for allocating resources in line with shifting requirements; the need for accountability for funds, programs, and fair practices; the need to recognize adult learning needs; and the need for communication and interaction among postsecondary and state leaders. Three pressing problem areas are educational finance, relationships with private institutions, and education for productive living. It is suggested that there is a need to examine the procedures used for determining the size and distribution of state funds, and that funding formulas may not be appropriate in a stable system. Other concerns that should be examined are the balance between aid to students and aid to institutions, the relationship between tuition and state support, and the relationship between job markets and education and the balance between education for vocational skill development and education for a productive and satisfying life. Some references are made to the situations in Ohio, Illinois, Indiana, and Michigan. (SW)