New Maryland State Board for Higher Education funding guidelines for public four-year institutions in Maryland are presented, along with information on the development of the guidelines. Four guidelines models were studied and evaluated by criteria endorsed by state and university officials. To derive the guidelines, each program area (institutional research, public service, academic support, institutional support, plant, student services, scholarships and fellowships) was discussed separately by the finance advisory committee. Discussions focused on relevant data from other states and assumptions underlying utilization of alternate formats, variables, and statistical techniques. The formula developed to meet the criteria recommends state funding based on a single set of rates applied to all institutions. The process to update the guidelines to reflect adequately the impact of inflation utilizes "Chase Econometrics" projections for increases in per capita income, the cost of fuel oil and gas, the cost of total durable goods, and the Consumer Price Index. The funding guidelines were evaluated using criteria on equity, different college roles/missions, productivity, and incentives. Guidelines for fiscal years 1984, 1985, 1986, and 1987 are shown. (Author/SW)