The impact of higher education leaders on policy and program implementation at the state house and the priorities of 32 governors were studied in 1986. The report is based on survey responses from these governors plus supplementary interviews. Interviews were also conducted with a recent former governor, a state legislator, and a congressman to help analyze preliminary survey findings. The survey data indicate that the state governors have established educational improvements as a high priority, have developed a wide range of initiatives to implement these priorities, and have been substantially successful in selling their programs to their state legislatures. The results also show: the limited influence of college leaders on state higher education policy; and the fact that a new policy development apparatus is forming independent of the nation's higher education leaders. Based on the survey and interviews, suggestions include: college leaders must pay more attention to broader state issues; a college's public image can be shaped, in part, by having its president use the executive office to speak out on public issues; and colleges should consider a team approach in interacting with state governments. The nine survey questions and the governors' responses are presented, along with a list of participating states. (SW)