Fiscal support for higher education and policy concerns at the state level during difficult financial times are discussed, with specific reference to the western states. States vary widely in several ways: the strength of their economies, the actions of legislatures and voters to reduce the revenues or the expenditure base of state and local governments, and the relative priority of higher education in competition for public resources. Some states in the West are expected to increase enrollments while others face declines. For institutions in states facing enrollment declines, fewer students usually mean fewer state dollars under enrollment-sensitive formulas. However, educational institutions can suffer with either more or less students. Areas of special concern to states are student access and retention, which are affected by student charges and financial aid and by efforts to enroll minority groups and disabled students. The following recommendations are offered: charges should be established at levels which reduce the effect of price on student choice among the public segments, and some programs should be funded for longer than 1 and 2 years. (SW)