The influence of full-time-equivalent college enrollments and the Consumer Price Index on the costs of higher education for North Carolina's comprehensive and liberal arts colleges and universities was assessed. Comprehensive institutions are defined as enrolling more than 1,500 students and offering a liberal arts program and at least one professional program, while liberal arts colleges are defined as those four-year colleges offering liberal arts programs only. The expenditures for the public institutions grew at an average annual rate of 19 percent as compared to a 13 percent average increase for the private schools. Most of this growth was a result of expanding enrollments and inflated dollars. When adjustment was made for increasing enrollment growth by expressing expenditures in student units, the growth rate was 11 percent per annum for the public universities and 10 percent for the private sector. The current expenditures annual growth rate declined .4 percent for the public institutions and .7 percent for the private institutions when adjustments were made for enrollment growth and the decline in the value of the dollar over the decade. At the public institutions, enrollment increased more rapidly and the operating costs per student were lower than was the case at private institutions. (SW)